Illustrate the income and substitution effects of increase

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(a) Assume good X is normal. Plot a graph to illustrate the income and substitution effects of an increase in PX, holding PY and I constant. (b) Now suppose X is a Giffen good. Plot a graph to illustrate the income and substitution effects of an increase in PX, holding PY and I constant.

Reference no: EM131003327

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