Ayushi Asked a Question
September 9, 2020 11:19 ampts 30 pts
Under Slutsky's substitute effect, the consumer: 1. Moves on a lower indifference curve 2. Moves on a higher indifference curve 3. All the three alternatives are possible 4. Remains on the same indifference curve
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  • Nidhi taparia Best Answer
    In Slutsky's approach, income is reduced or increased such that the consumer is able to purchase the same combination of goods, if he so desires. Income is reduced by cost differen...
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