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Jim's preferences over goods x and y might be represented by the utility function u(x,y)=x0.5+2+2y. The price of good x is px=1, the price of good y is py=8, and Jim's income is m=20. Suddenly, the price of good x increases to px=2. What is the change in demand for the good x caused by the income effect of this price change? (Hint: Before you start calculating the effect, take a closer look at the utility function.)
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