Rachel's preferences for cups of coffee (x) and muffins (y) might be represented...
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Rachel's preferences for cups of coffee (x) and muffins (y) might be represented by the utility function u(x,y) = min(2x,2y). The price of coffee (px) is px=50, the price of muffins (py) is py=30, and her income is m=400. Suppose that the price of muffins increases to 50. Calculate the change in demand for muffins due to the income effect. Write the correct sign!
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