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Suppose that a consumer with utility U(x1, x2) is given an initial endowment (x1,x2) so...

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Suppose that a consumer with utility U(x1, x2) is given an initial endowment (x1,x2) so that her total budget set is Pixi + pzxz. a) Derive a formula for the Slutsky equation with her endowments. b) Suppose that P1, P2 are such that consumption is exactly equal to the initial endowment. Show that api 9x2. - 2

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