You are a consumer who consumes goods X (education) and goods Y (recreation), where the...
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You are a consumer who consumes goods X (education) and goods Y (recreation), where the price of good X is PX and the price of Y is Py. Your income that can be allocated to purchase these two items is M.
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a. What happens if the price of education rises? Describe the substitution effect and the income effect. b. Derive the demand curve for education.
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