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How do we distinguish between the substitution effect incase of a normal good and that of an inferior good

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How do we distinguish between the substitution effect incase of a normal good and that of an inferior good
Answered Same Day Dec 22, 2021

Solution

Robert answered on Dec 22 2021
113 Votes
How do we distinguish between the substitution effect in case of a normal good and that of an
inferior good?
Answer:
Whenever price of a good changes, it creates two effects simultaneously; substitution effect and
income effect. Substitution effect arises due change in relative price of good...
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