Question

Consider a consumer that has preferences given by u(x,y)= x^(2/5) y^(3/5) and a budget of $300....

Consider a consumer that has preferences given by u(x,y)= x^(2/5) y^(3/5) and a budget of $300. This consumer can purchase either good x or good y. The consumer faces a price of good x of $1 and a price of good Y of $6. What is the income effect of a price decrease of good Y to $1.50? (Note: Round your answer to the nearest whole number. For example, if your answer is 15.75 enter in 16)

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