Question: uxy x3yincome12px 1py 2px 1py 4 initial prices pxpy and...
u(x,y)= x+3y,INCOME=12;px =1,py =2;p′x =1,p′y =4
initial prices px,py and final prices p′x,p′y. For THE problem, you are to find:
(a) the optimal choice at the initial prices (b) the optimal choice at the final prices
(c) the change = optimal choice at final prices - optimal choice at initial prices (d) the income effect and the substitution effect