Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell,

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Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell, Julian purchased fewer plants. Which effect was stronger for Julian, the income effect or the substitution effect?

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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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Question Posted: Nov 27, 2015 02:13 AM

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Julian buys plants and flowers every month. Both are normal goods. When the price of flowers fell,

Question:

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The substitution effect was stronger When the price of flowers falls the income effect predicts t...View the full answer

Microeconomics

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