Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell,

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Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell, Julian purchased fewer plants. Which effect was stronger for Julian, the income effect or the substitution effect?

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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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Question Posted: Sep 21, 2024 06:02 AM

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Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell,

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The substitutioneffect was stronger When the price of flowers falls the income effectpredicts th...View the full answer

Microeconomics

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