What are the slutzky substitution and income effects

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Zachary has preferences represented by the utility function u = x1 x2. He has an endowment of w1 = 100 and w2 = 0 and faces relative prices p1/p2 = 2. If the relative price decreases to 1, what are the Slutzky substitution and income effects on the consumption of good 1?

Reference no: EM13149554

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