Consider a simple person who consumes only two goods, Food, and Clothes. Represent the income effects...

 

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Consider a simple person who consumes only two goods, Food, and Clothes. Represent the income effects and substitution effects in the indifference diagram. Q2: Please tell us your example where the marginal return to labor diminishes. (Try to use your own examples, such as homework project, etc.) Q3: Please tell us your idea why marginal return to labor diminishes. (Try to use your own examples, such as homework project, etc.) Q4: The following are the two largest startup companies that went through an acceleration program Ycombimator. Explain which companies are likely to have benefitted from the network externalities, and why. Consider a simple person who consumes only two goods, Food, and Clothes. Represent the income effects and substitution effects in the indifference diagram. Q2: Please tell us your example where the marginal return to labor diminishes. (Try to use your own examples, such as homework project, etc.) Q3: Please tell us your idea why marginal return to labor diminishes. (Try to use your own examples, such as homework project, etc.) Q4: The following are the two largest startup companies that went through an acceleration program Ycombimator. Explain which companies are likely to have benefitted from the network externalities, and why.

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1 Income and Substitution Effects on an Indifference Diagram The income effect occurs when the budget constraint shifts due to a change in income affecting the consumers purchasing power for both good... View the full answer