Neville, Has a Friend Named Colin

question 6

Multiple Choice

Neville, has a friend named Colin.Colin has the same demand function for claret as Neville, namely q = .02m - 2p, where m is income and p is price.Colin's income is $7,500 and he initially had to pay a price of $40 per bottle of claret.The price of claret rose to $80.The substitution effect of the price change

• A)reduced his demand by 80.
• B)reduced his demand by 24.
• C)increased his demand by 80.
• D)reduced his demand by 136.
• E)reduced his demand by 34.

Comprehend the principle of derived demand and its examples.

Grasp the concept of the demand for a resource and the factors it depends on.

Calculate the Marginal Revenue Product (MRP) for additional workers in a practical scenario.

Distinguish between Marginal Revenue Product (MRP) and other economic measures like Marginal Resource Cost (MRC).

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Definitions:

Melanocytes

Cells located in the lower layer of the skin's epidermis and in the hair follicles, responsible for producing the pigment melanin, which colors the skin, hair, and eyes.

Vitiligo

A condition in which the skin loses its pigment cells, resulting in discolored patches.

Papillary Layer

The upper layer of the dermis that contains blood capillaries, sensory neurons, and the bases of the hair follicles.

Dermis

The dermis is the thick layer of living tissue below the epidermis that forms the true skin, containing blood capillaries, nerve endings, sweat glands, hair follicles, and other structures.