The rising price of gasoline has caused your parents to use public transportation rather than drive to work. They have also decided to cancel a cross-country trip for a family reunion. Are there substitution and income effects here? Explain. (Hint: Don't write more than 4 sentences)

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.2: Income And Substitution Effects And The Law Of Demand
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The rising price of gasoline has caused your parents to use public transportation
rather than drive to work. They have also decided to cancel a cross-country trip for a
family reunion. Are there substitution and income effects here? Explain. (Hint: Don't
write more than 4 sentences)
Transcribed Image Text:The rising price of gasoline has caused your parents to use public transportation rather than drive to work. They have also decided to cancel a cross-country trip for a family reunion. Are there substitution and income effects here? Explain. (Hint: Don't write more than 4 sentences)
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