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View Full Version : Total effect + income effect = Substitution effect?


alionline83
Apr 5, 2007, 01:08 PM
In intermediate economics we are told that Total Effect = Income effect + Substitution effect but in advance level this relation is changed to
Total effect+income effect = substitution effect

why is that? Please explain with logic

alionline83
Apr 5, 2007, 11:55 PM
Any one?