He optimal amount of x1, x2, p1, p2 and income are given by the following:
x subscript...
He optimal amount of x1, x2, p1, p2 and income are given by the following:
x subscript 1 equal fraction numerator 2 i over denominator 7 p subscript 1 end fraction space space space space space space space space space space x subscript 2 equal fraction numerator 5 i over denominator 7 p subscript 2 end fraction
the original prices are: p1=19 p2=19
the original income is: i =2,592
the new price of p1 is the following: p1'=41
assume that the price of x1 has changed from p1 to p1'. what is the income effect?
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