Indifference curve analysis income and substitution effects

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Комментарии
Автор

Hi, I got A (87%) for CIE AS economics. I told u I would inform u. I shocked the world with this. My eco teacher and class coordinator didn't even expect C from me hahaha

oneinabillion
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I read this in one of the latest A Level Papers.
2a) Explain why an identical price fall would result in a different demand curve for a normal good
from that for an inferior good. Use indifference curve analysis to support your answer

The demand curves for both normal goods and inferior goods would be downward sloping. How will they differ? The marking scheme mentions something about PED etc. Would really appreciate it if you could help me with this one!

orangeandtealstudios
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why is this hard omg also can you do one for giffen goods

maaz
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Why did u construct a parallel line (on the left) of the new buget line ??? I didn't get the concept

laibamaniar
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Hi, I can't understand the income and substitution effect. Could you please explain this? Thank you so much.

neeladv_
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Why we make a shift for the budget line to touch the first indifference curve.

tahaezz
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We draw the subsitution effect curve tanget to the original indifference curve because a change in price holding utility constant? Enhance tuition I really don't understand.

RamSharma-zpfx
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A bit lost on the income and substitution effect hahaha

oneinabillion