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income and substitution effects due to a price change in one of the conmmodity that the consumer buys.

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income and substitution effects due to a price change in one of the conmmodity that the consumer buys.
Answered Same Day Dec 29, 2021

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David answered on Dec 29 2021
113 Votes
Income and substitution effects due to a price change in one of the conmmodity that the
consumer buys.
Answer:
A change in the price of a good creates two effects; substitution effect and income effect.
Substitution effect happens due to change in the relative price of good keeping money income
constant while income effect happens due to change in...
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