Find the substitution-income and total effects

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A consumer has utility function given by u(x1, x2) = √ x1x2. Suppose the price of good 1 falls from $5 to $2, while the price of good 2 and the consumer’s income remain constant at $10 and $100, respectively. Find the substitution, income, and total effects on the demand for good 1 after the price change.

Reference no: EM131096535

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