Question

conclusion of price effect on substitute goods​

Answer 1

Answer:

a fall in price of x causes the consumer to increase his consumption of the cheaper commodity x and reduce the consumption of commodity.  Thussubstitution effect associated with the fall in x p is positive   0 1 2   Ox Ox  As a result of fall in price of good x, real income of consumer increases.

Answer 2

Answer⤵️⤵️

a fall in price of x causes the consumer to increase his consumption of the cheaper commodity x and reduce the consumption of commodity.  Thus substitution effect associated with the fall in x p is positive   0 1 2   Ox Ox  As a result of fall in price of good x, real income of consumer increases.

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