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1 Suppose that when the price of good 1 decreases, the substitution effect causes the individual to change consumption of good 1 by 10 while
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Suppose that when the price of good 1 decreases, the substitution effect causes the individual to change consumption of good 1 by 10 while the income effect causes the individual to change consumption of good 1 by -6. Which of the following is true? 0 The total effect is 16 and good 1 is normal Q The total effect is 16 and good 1 is inferior O The total effect is 4 and good 1 is normal Q The total effect is 4 and good 1 is inferiorStep by Step Solution
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