Suppose two goods coffee and cream provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield a substitution effect and an income effect in opposite direction. a substitution effect and an income effect in the same direction. a substitution effect but no income effect. an income effect but no substitution effect

Suppose two goods coffee and cream provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield a substitution effect and an...

Suppose two goods coffee and cream provide the consumer with utility but only if they are consumed in fixed proportions. An increase in the price of coffee will yield
1. a substitution effect and an income effect in opposite direction.
2. a substitution effect and an income effect in the same direction.
3. a substitution effect but no income effect.
4. an income effect but no substitution effect

Jun 08, 2022