Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 16

Changes in the price of another good create both income and substitution effects in a person's demand for, say, coffee. Describe those effects in the following cases and state whether they work in the same direction or in opposite directions in their total impact on coffee purchases.
1. A decrease in the price of tea
2. A decrease in the price of cream