1.6. The price of cheese rises from $6 to $10 a pound, while the price of wine...

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1.6. The price of cheese rises from $6 to $10 a pound, while the price of wine remains $3 a glass. For a consumer with a constant income of $3,000, show what happens to consumption of wine and cheese. Decompose the change into income and substitution effects.

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Principles Of Economics

ISBN: 9780324168624

3rd Edition

Authors: N. Gregory Mankiw

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