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Suppose the price of public transportation increased. You know that the absolute value of the income effect of this increase is 5, the absolute value
Suppose the price of public transportation increased. You know that the absolute value of the income effect of this increase is 5, the absolute value of the substitution effect is 10, and public transportation is an inferior good. The total effect of the increase in the price of public transport will be: {:1 decrease of quantity demanded by 15 {i} decrease of quantity demanded by 5 {j increase of quantity demanded by 5 .: :I increase of quantityr demanded by 15
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