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Discuss in details the substitution and income effects in the Consumer Theory. Please address the fol lowing using one or more diagrams and clear legends:
Discuss in details the substitution and income effects in the Consumer Theory. Please address the fol lowing using one or more diagrams and clear legends: is the diagram(s) illustrating a price increase or decrease? What do we know about the sign and size of substitution and income effects?? Is the overall effect ambiguous? What is an ordinary good? A Giff en good? How are the substitution and income effects like for them, respectively? Is your diagram(s) illustrating an ordinary good or Giffen good?
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