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Answer to Question #89581 in Microeconomics for Areej
Question #89581
What will be the shape of the price consumption curve if X and Y are substitute goods. What can you inter about the own and cross price elasticities of demand? Explain using graphs.
Expert's answer
The price consumption curve is downward-sloping if X and Y are substitute goods. The demand for good X should be elastic and cross price elasticity of demand between goods X and Y should be positive.
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