=+d. Suppose instead that the price of other goods fell from $1 to $0.50 while the price
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=+d. Suppose instead that the price of “other goods” fell from $1 to $0.50 while the price of gasoline stayed the same at $2. What is the change in my consumption of gasoline due to the substitution effect? Compare this with the substitution effect you calculated for the gasoline price increase.
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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