Substitution vs Income Effect & Diminishing Marginal Utility

Substitution vs Income Effect & Diminishing Marginal Utility 1) Explain how a price change is affected by (a) the substitution effect, (b) the income effect. 2) If someone is very thirsty and drinks five glasses of water, explain how the principle of the diminishing marginal utility is related to drinking each glass of water. 3) […]

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