To answer:
The questions by considering the situations given
Concept Introduction:
Budget line: The budget line shows the various combinations of goods and services that can be purchased with the given level of income and considering the prices of other products.
Indifference curve: The indifference curve is a line showing all possible combinations of two goods which give the consumers equal satisfaction. In other words the consumer would be indifferent in these points.
Substitution effect: The substitution effect is an economic theory in which when the
Income effect: The income effect is described as the change in the quantity of goods and services due to a change in the income of the people
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