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Suppose that Henry's tastes over peanuts (x) and potato chips (y) are summarized by the utility function u(x,y) = x+y and and px = 20, py = 30 and m = 300. Now let's suppose that the price of peanuts (px) suddenly increases to px = 35 while income stays the same. Calculate a change in demand for peanuts due to the substitution effect.
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