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Show the income effects and substitution effects

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Neha's income $300 per month. She spends all of it on ticket to concerts and films. A concert ticket (c)costs $15 and a film ticket(F) costs$10. She substitute film tickets with concerts tickets. After 2 months the price of film ticket increased to $20 while concerts tickets and her income remained unchanged.

1. Show the income effects and substitution effects due to price changes in the graph.

2. Is film tickets good or normal goods?

Reference no: EM132593169

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