Ejercicio Test 4 - g · Microeconomía I UPF 2019

g. Jack's preferences are given by $u(x, y) = \min\{2x, 2y\}$. Income is $m = 40$, $p_x = 1$, and $p_y = 1$. If $p_x$ increases to 4, what is the income effect ($\Delta x^I$) on Jack's demand for good $x$ in the sense of Slutsky?

Solución: (c) $\Delta x^I = -12$