Re: Daily question

Posted by Kanika on Feb 16, 2009; 12:35pm
URL: http://discussion-forum.276.s1.nabble.com/Daily-question-tp2328964p2334592.html

(1)The intial quantities of x and y are =(150,75),the total price effect is 75,By Slutsky the substitution effect is 37.5 and income effect is 37.5,By Hicks,s.e=0 and i.e.=75
(2)Also ic's are downward sloping because both marginal utilities are positive.