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(Solved): If Aahba's income were to change at the same time, so that she could exactly afford her old commodi ...




If Aahbas income were to change at the same time, so that she could exactly afford her old commodity bundle, what would her
Aahbas demand function for \( x \) is given by \( x\left(p_{x}, p_{y}, m\right)=\frac{2 m}{5 p} \). Her income is \( \$ 800.
If Aahba's income were to change at the same time, so that she could exactly afford her old commodity bundle, what would her new income be?\$ What would her demand for \( x \) be at this new level of income? units of \( x \) Part3 (4 points) The substitution effect is a change in demand from The income effect of the price change is a change in demand from units of \( x \) to Aahba's demand function for \( x \) is given by \( x\left(p_{x}, p_{y}, m\right)=\frac{2 m}{5 p} \). Her income is \( \$ 800.00 \) per month. The current price of \( x \) is \( \$ 5 \) and the price of \( y \) is \( \$ 20 \). 1st attempt Part 1 (2 points) If the price of \( x \) falls to \( \$ 4 \), then Aahba's demand for \( x \) will change from Lunits to units.


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Part 1. The Demand for x will change from 64 units to 80 units Old Demand=2m5px=2×8005×5=64New Demand=2m5px=2×8005×4=80
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