Explain and identify using either Hicksain approach

timer Asked: Mar 21st, 2014

Question description

a) Using two goods X1 and X2 with their respective prices PX10 andPX20, where both goods are normal goods. If the price of good X1 increased from PX10toPX11, Using a clearly labeled diagram, explain and identify using either Hicksain approach or Slutsky approach the:-

            i. Total change in demand for X                                                  

            ii. Substitution effect                                                                                     

            iii. Income effect

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