a. Let us say that the price of a consumption goods increases, how do you explain the differences between income effect and substitution effect? Use graph to explain it!b. In the short-run as well as in the long-run, average total cost curve (ATC) always look like the letter U. Explain what factors that cause its characteristics.c. Explain the relation between cost curve and production curve of a company in the short run! Utilize the graph!

a. Let us say that the price of a consumption goods increases, how do you explain the differences between income effect and substitution effect? Use graph to explain it! b. In the shortrun as well as in the long run, average total cost curve {ATO} always look like the letter U. Explain what factors that cause its characteristics. c. Explain the relation between cost curve and production curve of a company in the short run! Utilize the graph