10. You and your friends are considering vacationing in either Cabo San Lucas or Cancun for spring...

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10. You and your friends are considering vacationing in either Cabo San Lucas or Cancun for spring break. When you fi rst researched the cost of your hotel and fl ights, the total price was $1,000 to each destination. However, a sale has lowered the total cost of going to Cancun to $800. Does this change create a substitution effect, a real-income effect, or both? Explain.

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Principles Of Microeconomics

ISBN: 9780393935769

1st Edition

Authors: Dirk Mateer, Lee Coppock

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