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Calculate the total-substitution and income effects

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David's utility function is U(X, Y) = 4X + 3Y. The price of X is $6, the price of Y is $6 and his income is $120. The price of X drops to $4, the price of Y and his income remain the same. Calculate the total, substitution and income effects for his consumption of X due to the price change of X.

Reference no: EM132482592

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