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Ali spends her entire monthly income on two goods: crepes (C) and mochas (M), where we assume that she can consume partial units of either
Ali spends her entire monthly income on two goods: crepes (C) and mochas (M), where we assume that she can consume partial units of either good. Crepes cost $8 and mochas cost $4 in the month of May. Her utility maximizing bundle in May included 33.75 crepes and 45 mochas.
- The substitution effect for crepes is 6.98.
- The income effect for crepes is 13.27.
- The substitution effect for mochas is -11.06.
- The income effect for mochas is 11.06.
Ali's new utility-maximizing bundle in June includes ______crepes and _______mochas.
His income is _______
crepes cost ______ in june
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