ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
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Indifference curve analysis
1. Income and Substitution Effect of a fall in price of Good X (Normal)<br />Good XGood YI1I2ABBL1BL2XXBBL1CSITotal change in Good XXAXCBL3Substitution Effect (S):Income Effect (I):Total change in Good X (S + I)<br />Income and Substitution Effect of a fall in price of Good X (Inferior, non-Giffen)<br />Good XGood YI1I2ABBL1BL2XBBL1CSITotal change in Good XXAXCBL3Substitution Effect (S):Income Effect (I):Total change in Good X (S + I)<br />Income and Substitution Effect of a fall in price of Good X (Giffen)<br />Good XGood YI1I2ABBL1BL2XBBL1CSITotal change in Good XXAXCBL3Substitution Effect (S):Income Effect (I):Total change in Good X (S + I)<br />