Exhibit 13-4
-Refer to Exhibit 13-4. Over the segment BC of the curve,

Name: Exhibit 13-4 -Refer to Exhibit 13-4. Over the segment BC of the curve,
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Question

Exhibit 13-4 
-Refer to Exhibit 13-4. Over the segment BC of the curve,

Quizplus · Accepted Answer

The substitution effect is stronger than the income effect because the slope of the segment BC is negative, indicating that as the price of the good increases, the quantity demanded decreases. This is consistent with the substitution effect, which states that consumers will substitute away from a good that has become more expensive.

Exhibit 13-4 -Refer to Exhibit 13-4. Over the Segment BC of the BC