If the demand function face by the consumer for good X is given by             X=15+MP-120 Where X = Quantity demanded, M = income and P = Price of product X. Assume his original income is Kshs. 3200 per month and price of good X has increased from Kshs. 10 per unit to Kshs. 20 per unit. Calculate the magnitude of total effect (TE), substitution effect (SE) and income effect (IE) resulting from this change in price.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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If the demand function face by the consumer for good X is given by

            X=15+MP-120

Where X = Quantity demanded, M = income and P = Price of product X.

Assume his original income is Kshs. 3200 per month and price of good X has increased from Kshs. 10 per unit to Kshs. 20 per unit. Calculate the magnitude of total effect (TE), substitution effect (SE) and income effect (IE) resulting from this change in price.

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