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P 3. Li Hua is an enthusiastic fan of Popmarts. When the prices of all other goods are fixed at current levels, Li Hua's demand
P 3. Li Hua is an enthusiastic fan of Popmarts. When the prices of all other goods are fixed at current levels, Li Hua's demand function for highquality Popmart blind boxes is q 0.02m-3p, where m is his income, p is the price of a Popmart blind box, and is the number of blind boxes that he wants to buy. Li Hua's income is 7,500 Yuan, and the price of a Popmart blind box is 30 Yuan. (a) How many blind boxes will Li Hua buy? (b) If the price of a blind box rose to 40 Yuan, how much income would Li Hua have to have in order to be exactly able to afford the amount of blind boxes and the amount of other goods that he bought before the price change? At this income, and a price of 40 Yuan, how many boxes would Li Hua buy? (c) At his original income of 7,500 and a price of 40, how many blind boxes would Li Hua demand? (d) From the analysis above, please gives the impact of substitution effect and income effect when the price changes from 30 Yuan to 40 Yuan
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