Suppose that with a budget of $160, Fatima spends $96 on sushi and $64 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, after the price of bagels falls to $1 per bagel. Instructions: Enter your answers as a whole number. How many pieces of sushi and how many bagels did Fatima consume before the price change? ] pieces of sushi and | bagels At the new prices, how much money would it have cost Fatima to buy those same quantities (that is, the quantities that she consumed before the price change)? $ Given that it used to take Fatima's entire $160 to buy those quantities, how big is the income effect caused by the lower price of bagels?

Suppose that with a budget of $160, Fatima spends $96 on sushi and $64 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, after the price of bagels falls to $1 per bagel. Instructions: Enter your answers as a whole number. How many pieces of sushi and how many bagels did Fatima consume before the price change? ] pieces of sushi and | bagels At the new prices, how much money would it have cost Fatima to buy those same quantities (that is, the quantities that she consumed before the price change)? $ Given that it used to take Fatima's entire $160 to buy those quantities, how big is the income effect caused by the lower price of bagels?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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