Answer to Question #272913 in Microeconomics for Chala

Question #272913

 “Substitution effect of any commodity is positive for a given a price change”. Explain the validity of this statement using appropriate illustrations. 


1
Expert's answer
2021-11-29T16:25:47-0500

The income effect defines how changes in relative income and prices affect consumption, whereas the substitution effect discusses how changes in relative income and prices affect consumption.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

Madushan
29.11.21, 17:46

Good

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS