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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 13
When there are only two goods, the assumption of a diminishing MRS requires that substitution effects have price and quantity move in opposite directions for any good. Explain why this is so. Do you think the result holds when there are more than two goods?
Explanation
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For two goods 
and and a given amount o...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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