Question
The graph shows Esther's best affordable point at A. The price of seeing a movie rises and Esther's new best affordable point is C
The graph shows Esther's best affordable point at A. The price of seeing a movie rises and Esther's new best affordable point is C Draw a budget line that isolates the substitution effect Label it 82. Draw a point to indicate where Esther consumes if she faces the budget line A to point E, Eto point C Magazines (per month) NUU you've drawn. Label it B For Esther, the substitution effect is the movement from point income effect is the movement from point , and the ,4 to point C, B to point C, C to point 8, C to point 8 C to point A 8 to point A
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