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Yourbudget is Rs. 5000. You allocate it among two goods of your choice. Assume the price of one good decreases. What happens to your consumption

Yourbudget is Rs. 5000. You allocate it among two goods of your choice. Assume the price of one good decreases.

What happens to your consumption pattern and the slope of the budget.

Use graphs to explain your observations.

Decompose the change into the income and substitution effect

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