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Assume good X is a Giffen good.Here, the income effect is strongly negative.Using the budget line and utility curves, explain the substitution and income effects
Assume good X is a Giffen good.Here, the income effect is strongly negative.Using the budget line and utility curves, explain the substitution and income effects that occur when the price of good X increases.Explain and graph.Perhaps use large graphs to make sure you show and explain all effects.Label and explain everything.
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