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1. Graphical Illustration: In this situation, the price of soda has increased (movement along the soda axis to a higher price level). In comparison, the
1. Graphical Illustration: In this situation, the price of soda has increased (movement along the soda axis to a higher price level). In comparison, the price of pizza has decreased (movement along the pizza axis to a lower price level). The consumer remains on the same indifference curve, indicating they are just as happy as before the price changes
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Principles of Economics
Authors: Fred M. Gottheil
7th edition
978-1133962069, 9781285064444, 1133962068, 1285064445, 978-1285064437
