Consider an individual making choices over two goods, x and y with initial prices P_{x}= 5 and P_{y}= 2, with income I=100:

- If the individual's preferences can be represented by the utility function u = 4x+ 2y; find the income, substitution and total effects of a decrease in the price of x to P
_{x}= 3. - If the individual's preferences can be represented by the utility function u = min(4x,2y); find the income, substitution and total effects of a decrease in the price of x to P
_{x}=3.

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