Lucy wants to go on a special diet to lose weight. The diet requires 1 serving of protein and 10 servings of vegetables/fruits per meal. Lucy has a budget of $900 per month on food items.
a. If the price for 1 serving of protein is $10 and 10 servings of vegetables/fruits is $20, how many meals will she buy?
b. If the price for 1 serving of protein changes to $5 and 10 servings of vegetables/fruits is $20, how many meals will she buy? What is the income and substitution effect after the price change?

Question

Lucy wants to go on a special diet to lose weight. The diet requires 1 serving of protein and 10 servings of vegetables/fruits per meal. Lucy has a budget of $900 per month on food items.
a.  If the price for 1 serving of protein is $10 and 10 servings of vegetables/fruits is $20, how many meals will she buy?
b.  If the price for 1 serving of protein changes to $5 and 10 servings of vegetables/fruits is $20, how many meals will she buy? What is the income and substitution effect after the price change?

Quizplus · Accepted Answer

The Answer of Lucy wants to go on a special diet to lose weight. The diet requires 1 serving of protein and 10 servings of vegetables/fruits per meal. Lucy has a budget of $900 per month on food items.
a.  If the price for 1 serving of protein is $10 and 10 servings of vegetables/fruits is $20, how many meals will she buy?
b.  If the price for 1 serving of protein changes to $5 and 10 servings of vegetables/fruits is $20, how many meals will she buy? What is the income and substitution effect after the price change?

Lucy Wants to Go on a Special Diet to Lose