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Results tagged with consumer-theory
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user 6782
the study of consumer choice and its fundamental underpinnings in preferences and constraints.
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Verification of understanding of the substitution and income effect of normal, inferior and ...
My understanding is as follows:
Normal Goods: Income and Substitution effects are both positive.
Inferior Goods: Income effect negative, substitution effect positive. Substitution effect outweighs i …
- 675