Neville, Has a Friend Named Algernon

question 7

Multiple Choice

Neville, has a friend named Algernon.Algernon has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price.Algernon's income is $5,500 and he initially had to pay a price of $20 per bottle of claret.The price of claret rose to $50.The substitution effect of the price change

• A)reduced his demand by 60.
• B)reduced his demand by 18.
• C)reduced his demand by 102.
• D)increased his demand by 60.
• E)reduced his demand by 28.

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Definitions:

1,3-Butadiene

An organic compound that is a simple conjugated diene with the formula C4H6, known for its role in the production of synthetic rubber.

Allylic Carbons

Atoms of carbon that are positioned next to a carbon-carbon double bond in a molecule, often exhibiting unique reactivity due to their position.

Cholesterol

A waxy substance found in the lipids (fats) in the blood, essential for the creation of vitamin D, steroid hormones, and bile acids, but high levels can lead to health risks.

Highest Occupied

Refers to the Highest Occupied Molecular Orbital (HOMO), which is the top-most energy molecular orbital that is occupied by electrons in a molecule under the ground state.