In indifference curve analysis, what happens as a result of a decrease in the price of a commodity?

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Economics · Economics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both income and substitution effects take place.

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Answer 1

Both income and substitution effects take place.

Answer 2

The consumer moves along the same indifference curve.

Answer 3

Only income effect takes place.

Answer 4

Only substitution effect takes place.

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