Suppose you have a demand function for milk of the form and your weekly income m...........

Economics-I Mathematical Methods in Economics

Suppose you have a demand function for milk of the form $\small x_{1}=100+\frac{m}{100p_{1}}$ and your weekly income (m) is Rs. 12,000 and the price of milk (p₁) is Rs 20 per litre. Now suppose the price of milk falls from Rs. 20 to Rs 15 per Litre, then what will be the substitution effect ? (50 words) (5 Marks)