Consumption Changes
Predicting how the share of income spent on a good changes when its price rises, from a CES utility with a stated elasticity of substitution.
A student spends all of their income of $income a term on textbooks (good x) and tutoring (good y). Their utility is ufunc, where x is the number of textbooks and y the number of hours of tutoring per term; this is family utility function, whose elasticity of substitution between the two goods is σ = sigma. The price of textbooks is $px per book and the price of tutoring is $py per hour, and both can be bought in any fractional amount. The price of textbooks now rises by k%, while the price of tutoring and their income stay the same, and the student again chooses the bundle that maximizes their utility. What percentage of their income will the student spend on textbooks after the price rise? Round to two decimals.
Use it
from datasets import load_dataset
ds = load_dataset("narunraman/steer_me", "consumption_changes")curl "https://steer-benchmark.cs.ubc.ca/api/sample?element_name=consumption_changes&n=5&seed=42"
See the Reference for the parameters.