Question
Mr. Kimeu has a Nyama choma consumption demand function which is given as Q = 20 + M/1-P where Q is the quantity of Nyama
Mr. Kimeu has a Nyama choma consumption demand function which is given as
Q = 20 + M/1-P where Q is the quantity of Nyama choma in grams per week, p is the price per gram per week and M is his income. His income is Ksh.150. If the price of Nyama choma per gram changes from 3 to Ksh.5.
Calculate Mr. Kimeu's total price effect, Substitution and income effect of the price change.
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Principles Of Microeconomics
Authors: N Gregory Mankiw
9th Edition
035713348X, 9780357133484
