Jamal consumes only two goods: lollipops and chewing gum. he treats these two goods as perfect substitutes, with one lollipop being a perfect substitute for a pack of chewing gum. initially, the price of a lollipop is $0.90, while packs of chewing gum are $2.25 each. jamal has $20 per week to spend on these two goods. suppose the price of chewing gum decreases to $1.35.
what is the substitution effect associated with the change in the price of chewing gum?
what is the income effect associated with the change in the price of chewing gum?