A decrease in the price of Good Y can result in a decrease of the quantity of Good Y demanded by consumers if the substitution effect: is negative and larger than the positive income effect. X is positive and the income effect is negative and larger than the substitution effect. and the income effect are both negative.
A decrease in the price of Good Y can result in a decrease of the quantity of Good Y demanded by consumers if the substitution effect: is negative and larger than the positive income effect. X is positive and the income effect is negative and larger than the substitution effect. and the income effect are both negative.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 20SQ
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