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Let the Utility Function be U = X1/2Y PX = $1; PY = $2; I =...

Let the Utility Function be U = X1/2Y PX = $1; PY = $2; I = $15 a. What are X and Y if there is an increase in the price of good X to $2? (0.5 Points) b. Use the slutsky equation to show this impact and what is attributed to the: a. Income Effect (0.5 Points) b. Substitution Effect (0.5 Points) c. What is the reduction in Utility caused by this increase in price? (0.5 Points)

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