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Unformatted text preview: because of a change in income, holding prices constant. • The total effect- of a price change is the sum of the income and substitution effects. This know as the slutsky equation • 25/02/2008 17:05:00 ← 25/02/2008 17:05:00 ←...
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- Fall '08
- Macroeconomics, W. Substitution effect, goods price changes