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Draw Two Graphs,one Directly Above the Other

question 52

Essay

Draw two graphs,one directly above the other.On the upper graph,label the vertical axis Good X and label the horizontal axis Good Y.On the lower graph,label the vertical axis the Price of good Y and label the horizontal axis Good Y.In the upper graph,show the income and substitution effects of a decrease in the Price of good Y when Y is a Giffen good.Draw the corresponding demand curve for Good Y in the lower graph.


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