Solved

Neville, Has a Friend Named Marmaduke

Question 3

Multiple Choice

Neville, has a friend named Marmaduke.Marmaduke has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price.Marmaduke's income is $8,000 and he initially had to pay a price of $40 per bottle of claret.The price of claret rose to $80.The substitution effect of the price change


A) reduced his demand by 80.
B) increased his demand by 80.
C) reduced his demand by 16.
D) reduced his demand by 144.
E) reduced his demand by 26.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents