Identify the quantity demanded

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Terry has a demand function for oysters given by the equation q=.02m-2p, where m is income and p is price. Terry's income is $8,000 and he initially has to pay a price of $40 per oyster. Assume the price of oysters rises to $80. Calculate the substitution effect, income effect, and total effect of the price change. Draw Terry's demand curve and identify the quantity demanded at $40/oyster and at $80/oyster. Are oysters a normal or inferior good for terry?

Reference no: EM13854550

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