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How do I draw a Slutsky compensation curve on a utility function graph? How many times does it cross the utility function?
Microeconomics, Economics
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Question: Suppose there is a pure exchange economy with two goods, A and B. The utility function for consumer i is U(A,B) = A 1 0.5 B 1 0.5 . The utility function for consumer 2 is U(A,B) = A 2 0.25 B 2 0.75 . Consumer 1 ...
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