Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 13SQ
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Transcribed Image Text:As price falls along a downward sloping ordinary demand curve (in the x₁, p₁ plane), consumer
utility will
fall.
rise.
rise if the income effect is GREATER than the substitution effect.
rise if the income effect is LESS than the substitution effect.
fall if the income effect is GREATER than the substitution effect.
rise if the income effect is LESS than the substitution effect.
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