What is the correct answer?


The relationship between price effect, income effect and substitution effect is:

A. P.E = S.E + I.E

B. S.E = P.E +I.E

C. I.E = P.E +S.E

D. S.E = P.E +2I.E

Correct Answer :

A. P.E = S.E + I.E

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