posted by jean on .
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.
DAMON is Working on it for you so stop posting it!
Sorry, I thought I posted it undr the incorrect subject.
I just finished the one maximizing utility of wine and cheese. I am way behind on the physics.
Thank you Damon for all your help this evening.
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