3.3 For most normal goods, the income effect and the substitution effect work in the same direction;

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3.3 For most normal goods, the income effect and the substitution effect work in the same direction; so when the price of a good falls, both the income and substitution effects lead to a higher quantity demanded. How would this change if the good is an inferior good?

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Principles Of Microeconomics

ISBN: 9789813107342

12th Global Edition

Authors: Karl E. Case, Sharon E. Oster, Ray C. Fair

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