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Jamal consumes only two goods: lollipops and chewing gum. He treats these two goods as perfect substitutes, with one lollipop being a perfect substitute for
Jamal consumes only two goods: lollipops and chewing gum. He treats these two goods as perfect substitutes, with one lollipop being a perfect substitute for a pack of chewing gum. Initially, the price of a lollipop is $2.10, while packs of chewing gum are $5.25 each. Jamal has $20 per week to spend on these two goods. Suppose the price of chewing gum decreases to $3.15. In your responses, give your answer to two decimal places. lst attempt Part 1 (1 point) 0 See Hint What is the change in chewing gum consumption due to the substitution effect associated with the change in the price of chewing gum? packs of chewing gum . Part 2 (1 point) Q See Hint What is the change in chewing gum consumption due to the income effect associated with the change in the price of chewing gum? packs of chewing gum
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