Question: Anne's utility function isx+4y. Initially, Anne has $24 to spend on goods, the price of good x is $2 per unit, and the price of

Anne's utility function isx+4y. Initially, Anne has $24 to spend on goods, the price of good x is $2 per unit, and the price of good y is $12 per unit. When the price of good x increases to $4 per unit, which of the following statements is true? (SE = substitution effect, IE = income effect)

Select one:

a.The change in quantity demanded for good x due to the SE is -12

b.The change in quantity demanded for good x due to the SE is 0

c.The change in quantity demanded for good x due to the IE is -3

d.The change in quantity demanded for good y due to the IE is 0

e.None of the above

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