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Substitution effect and Income effect Perfect Substitutes Continue reading →

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Substitution effect Income effect for perfect complements Continue reading →

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Draw the budget set in case of rationing of any one of the product

Draw the budget set in case of rationing of any one of the product

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Indifference curves are convex to origin and averages are preferred to extremes Continue reading →

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Suppose there is a tax on y after y bar How would budget set looks like in this case Continue reading →

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Graphical derivation of cost minimization Continue reading →