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(Solved): Anna has a weekly allowance of 72, all of which she spends on music downloads (D) and movie renta ...



Anna has a weekly allowance of €72, all of which she spends on music downloads (D) and movie rentals (M). Her utility function is U(D,M) = D1/2 + M1/2. The price of music downloads is €1/album. The price of movie rentals increased from €1/movie to €2/movie. Calculate the income and substitution effect of the price rise. (Enter your answer rounded to 2 decimal places (e.g., 32.16). Enter 0 if necessary. Answers should be positive, do not include negative numbers or minus signs.)



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