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Suppose that the consumer has a demand function for good X is given by: X=10+MPx- Originally his income is $ 200 per month and the
Suppose that the consumer has a demand function for good X is given by:
X=10+MPx-
Originally his income is $ 200 per month and the price of the good is 5 per kilogram and now the price of the good falls to 4 per kilogram.
Calculate the substitution effect, income effect and total price effect.
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