The following data pertain to products A and B, both of which are purchased by Madame X. Initially, the prices of the products and quantities consumed are:
PA = $10, QA = 3, PB = $10, QB = 7.
Madame X has $100 to spend per time period. After a reduction in price of B, the prices and quantities consumed are:
PA = $10, QA = 2.5, PB = $5, QB = 15.
Assume that Madame X maximizes utility under both price conditions above. Also, note that if after the price reduction enough income were taken away from Madame X to put her back on the original indifference curve, she would consume this combination of A and B:
QA = 1.5, QB = 9
1) The change in consumption of good B due to the substitution effect is ____________ and the change in consumption of good B due to the income effect is________ .