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managerial econ

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After Iraq invaded Kuwait, gasoline prices rose dramatically-up to 50 percent. There were many effects of the increased price of gasoline> Explain the following effects in terms of income effect, or the substitution effect, or both effects: a. People drove less and purchased less gas. b. People ate out less often. c. People had more tune-ups done on their cars. d. Bike sales went up. e. The sale of lottery tickets fell. f. People took vacations closer to home.

  • managerial econ - ,

    DAMON is Working on it for you so stop posting it!

  • managerial econ - ,

    Sorry, I thought I posted it undr the incorrect subject.

    Thank you

  • managerial econ - ,

    I just finished the one maximizing utility of wine and cheese. I am way behind on the physics.

  • managerial econ - ,

    Thank you Damon for all your help this evening.

  • managerial econ - ,

    Jean - you can figure this one out just as easily as I can.
    not eating out for example is clearly income decrease effect as is lottery budgets
    bike purchases is mostly substitution

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