| 11. | The reduced price alters relative prices in favour of commodity X, known as the substitution effect.
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| 12. | Any good where the income effect more than compensates for the substitution effect is a Giffen good.
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| 13. | Then the income effect from the rise in purchasing power from a price fall reinforces the substitution effect.
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| 14. | There is also a substitution effect.
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| 15. | It never quite gets to the end of any, thanks to the dynamics of price and substitution effects.
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| 16. | For example, we can safely make assumptions about demographic shifts and, perhaps, substitution effects for certain new technologies.
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| 17. | The study dealt namely with two common forces of demand that shaped the market : reinforcement and substitution effects.
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| 18. | The Income and Substitution effects of a wage increase " The Income and Substitution effects of a wage increase"
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| 19. | The first term on the right-hand side represents the substitution effect, and the second term represents the income effect.
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| 20. | A parallel effect will happen for cost saving efficient technologies for producers, where output and substitution effects will occur.
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