What is the wealth effect of this price change

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Ken Erdedy owns 14 units of marijuana. He both consumes it and sells it; and the latter activity is his only source of income. His utility function is U(x,y) = x^4 * y^1, where x denotes the units of marijuana he consumes and y denotes the composite good, i.e. the dollars he spends on everything else. The market price of the marijuana changed recently from 15 to 19. What is the wealth effect of this price change (using Hicksian decomposition) on marijuana?

Reference no: EM132526541

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