Final answer:
The Net (Total) effect of the price change on scones consumption for Marian is an increase in quantity demanded by 2 scones, from 5002 to 5004, given a price drop from Ksh. 80 to Ksh. 40. To determine the Substitution effect and the Income effect, further information on consumer behavior and preferences would be necessary.
Step-by-step explanation:
The objective here is to calculate the Substitution effect, Income effect, and the Net (Total) effect of a price change in scones for Marian's demand.
Firstly, we determine the initial quantity of scones consumed with the original price (P = Ksh. 80) and income (M = 16,000) using Marian's demand function Q = 5000 + M/1000P. Substituting values we get Q = 5000 + 16000/(1000*80) = 5000 + 2 = 5002 scones.
With the new price of scones (P = Ksh. 40), the quantity demanded becomes Q = 5000 + 16000/(1000*40) = 5000 + 4 = 5004 scones.
The Net effect of the price change is the total increase in quantity demanded, which in this case is 5004 - 5002 = 2 scones more consumed.
The Substitution effect reflects the change in consumption due to the relative price change of scones and other goods, causing a consumer like Marian to substitute towards scones when they become cheaper. The Income effect reflects the change in consumption because the effective purchasing power of Marian increases with the price drop, allowing her to buy more with the same income.
The exact figures for the substitution and income effects are not provided but are part of the total net effect, which will need to be dissected through additional information or assumptions on Marian's preferences and marginal rates of substitution.