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Commerce · Q850

Economics

Graduate and Post Graduate · Commerce · question 850

Q850

Hicks substitution effect for a fall in the price of a commodity, other things remaining constant, is given by

A.
a movement up a given indifference curve
B.
a movement down a given indifference curve
Answer
C.
a movement from a lower to a higher indifference curve
D.
a movement from a higher to a lower indifference curve

Answer: Option B

Solution

Answer: Option B
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