Economics · Consumer Behaviour
Under Slutsky's substitution effect, when the relative price of a commodity falls, the consumer moves to which type of indifference curve?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A lower indifference curve
- 2A higher indifference curve✓
- 3Remains on the same indifference curve
- 4Moves along a straight budget line only
Correct answer
A higher indifference curve
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