Business Studies, asked by eshu0555, 9 months ago

show that the price effect is the net result of substitution effect and income effect​

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Answered by queenlvu7276
0

Answer:

hey here is your answer

The income effect is the change in consumption of goods by consumers based on their income. The substitution effect happens when consumers replace cheaper items with more expensive ones when their financial conditions change.

hope it help u

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