Suppose u(x,y)=min(x,2y) and the price of X is 1, the price of Y is 1 and income is $12. If the price of X increases to 2, the income effect is supposed to be -1.
I keep getting zero for some reason. Gx(2,1,12)=4.8 and Gx(1,1,12)=8 while Hx(2,1,U)=4.8 and Hx(1,1,U)=8?
Why is it not zero? What am i doing wrong?