Question: We know that tomato is a normal good. Suppose that the price of tomato declines by 25%. In such a case the substitution effect would

We know that tomato is a normal good. Suppose that the price of tomato declines by 25%. In such a case the substitution effect would cause the amount of tomato purchased to increase by how much?

more than two times

The correct answer is not listed.

by three times

more than three times

two times

less than two times

less than three times

Dave's utility is characterized by U = min (9X, 2Y) . What would be his demand for X?

I/6(PX+PY)

3I/(9PX+2PY)

2I/(2PX+9PY)

3I/(PX+2PY)

3I/PX

I/18PX

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