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25-11-2022
Business

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3. consider the following statements: i. if the price of x rises and everything else stays the same, the substitution effect sex dominates the income effect iex, if x a giffen good. ii. if the price of x rises and everything else stays the same, the substitution effect sey and income effect iey reinforce each other if good y is an inferior good. iii. if the price of x falls and everything else stays the same, the substitution effect sex and income effect iex move in opposite directions if good x is an inferior good.

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