Question: Suppose you are a manager for Unga Millers Ltd, a firm that produces unga. m Given the market demand for a packet of Unga as
Suppose you are a manager for Unga Millers Ltd, a firm that produces unga.
m Given the market demand for a packet of Unga as x=100+- and the price of a 10p packet of unga is Ksh 45. If the consumer's income is given as Ksh 120000;
i). Determine the demand for unga.
(2marks)
ii). If the market price of unga reduced to Ksh 30, determine the total effect, substitution effect and the income effect of the price change on the demand for unga. (6marks).
Step by Step Solution
3.42 Rating (155 Votes )
There are 3 Steps involved in it
The detailed answer for the above question is provided below i To determine the demand for unga we n... View full answer
Get step-by-step solutions from verified subject matter experts
