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Answer to Question #209627 in Economics for Prince
Question #209627
The prices of both goods X and Y increase by 8%. This change in price results in a 4% decrease in the quantity demanded of good X, and a 25% decrease in the quantity demanded of good Y. This difference may be because...
Expert's answer
Utility from good X is more than Y. As a result, when the price level increased, the demand for good Y decreased more than X.
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#340153 on Dec 2023
#340153 on Dec 2023
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