3. Economist George Stigler once wrote that, according to consumer theory, if consumers do not buy less

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3. Economist George Stigler once wrote that, according to consumer theory, ‘if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.’ Explain this statement using the concepts of income and substitution effects.

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Business Economics

ISBN: 388402

2nd Edition

Authors: Mark P. Taylor, Andrew Ashwin, N. Gregory Mankiw

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