Answer to Question #134708 in Microeconomics for Saviour

Question #134708
find the substitution effect on consumption of peas due to the decrease in the price of peas in (c).
1
Expert's answer
2020-09-25T09:26:04-0400

Here, substitution effects explains the consumption of peas when price changes.The price change has two components which are substitution effect and income effect.


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