Question: Suppose a consumer has a demand function for good x of the form x = 2m/5px , where px is the per unit price of

Suppose a consumer has a demand function for good x of the form x = 2m/5px , where px is the per unit price of good x, and m is her income. Originally, her income is 1,000 dollars and the price of good x is 5 dollars. Now suppose that the price of good x falls to 4 dollars.

(a) What is the total change in demand induced by this change in the price?

(b)What is the associated substitution effect?

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