1-consider a consumer's choice between meat and fish. Use the indifference curves to illustrate the income effect and substitution effect of an increase in the price of fish. (10 marks)
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Expert's answer
2020-03-17T09:41:03-0400
Axis values are measured as quantities.
If the price of fish increases, the indifference curve will shift from 1 to 2. The curve will shift from 1 to 3 if the consumer’s income increases.
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