Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell, Julian purchased fewer plants. Explain what the income effect and substitution effect predict when the price of flowers falls. Which effect was stronger for Julian?

Principles of Microeconomics (MindTap Course List)
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Chapter21: The Theory Of Consumer Choice
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2. Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell, Julian purchased fewer plants. Explain what the income effect and substitution effect predict when the price of flowers falls. Which effect was stronger for Julian?

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