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Commerce · Q1325

Economics

Graduate and Post Graduate · Commerce · question 1325

Q1325

Which of the following equation is correct?

A.
Price effect = Income effect × Substitution effect
B.
Price effect = Substitution effect - Income effect
C.
Price effect = Income effect + Substitution effect
Answer
D.
Price effect = Income effect - Substitution effect

Answer: Option C

Solution

Answer: Option C
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