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Explain What Would Happen to the Equilibrium Consumption of Two

question 43

Essay

Explain what would happen to the equilibrium consumption of two goods,X and Y,if (a)income doubled and all prices tripled,(b)all prices doubled and income tripled,and (c)all prices and income doubled.In each case,show the effects when both goods are normal goods and when one good is a normal good and the other an inferior good.


Definitions:

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The act or process of assigning a sexual character or quality to a person, group, or thing, often in an inappropriate or excessive manner.

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A major professional organization in the United States representing psychologists and promoting psychological research and practice.

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Female children and adolescents, typically defined by their developmental stage rather than a specific age range.

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Dislike of or prejudice against homosexual people, often manifesting in discriminatory attitudes or behaviors.

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