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which product was used to show the income effect, substitution effect, and diminishing marginal utility?

Respuesta :

In this context, the "Pizza" was the product that is used to show the income effect, substitution effect, and diminishing marginal utility.

What is stated by Income effect?

The effect gives that Increase in price = Decrease in income = Decrease in quantity demanded

What is stated by Substitution effect?

The effect gives that Increase in price = Replace product with cheaper alternative = Decrease in quantity demanded

What is stated by Diminishing marginal utility?

The effect gives that Increase in consumption of a good = Decrease in satisfaction = Decrease in quantity demanded

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