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Decompose price effect into income effect and substitution effect. ​

User Lahsrah
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Answer:

➢ Breaking up Price Effect into Income and Substitution Effect (with diagram) ADVERTISEMENTS: As price of a good X falls, other things remaining the same, consumer would move to a new equilibrium position at a higher indifference curve and would buy more of good X at the lower price unless it is a Giffen good.


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