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(Income Effects) When moving along the demand curve, income must be assumed constant

(Income Effects) When moving along the demand curve, income must be assumed constant
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ECONOMICS

MT445 / MT 445
Managerial Economics
Kaplan University (KU Campus)

William A. McEachern
Economics: A Contemporary Introduction, 8e
Hoboken, NJ: John Wiley & Sons.

Unit 2: Opportunity Cost, Economic Systems, and Supply and Demand

Unit 2 Project
Chapter 4 – question 5, page 93
5. (Income Effects) When moving along the demand curve, income must be assumed constant. Yet one factor that can cause a change in the quantity demanded is the “income effect.” Reconcile these seemingly contradictory facts.

 

FILE: MS WORD

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