Unformatted text preview: real income associated with a rise in prices (you cannot buy as much as you once did with the same nominal income) b. Substitution Effect: due to change in the relative price of the good, cheaper goods are substituted for more expensive ones c....
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This note was uploaded on 02/20/2008 for the course ECON 1110 taught by Professor Wissink during the Fall '06 term at Cornell.
- Fall '06