ECON 301- EXAM QUESTIONS AND ANSWERS 2025/2026 UPDATE WITH COMPLETE SOLUTIONS (GRADED A+) DETAILED ANSWERS!!

ECON 301- EXAM QUESTIONS AND ANSWERS 2025/2026 UPDATE WITH COMPLETE SOLUTIONS (GRADED A+) DETAILED ANSWERS!! Price consumption curve - Curve that identifies the optimal market basket associated with each possible price of a good, holding constant all other determinants of demand MRSxo= -Px/Po (o is other goods) Income effect -a change in a consumer's real purchasing power brought about by a change in the price of a good Substitution effect -an incentive to increase consumption of a good whose price falls, at the expense of other, now relatively more expensive, goods Substitution effect -change in consumption due to change in relative prices, with no change in real income or well-being Income effect -change in consumption due to a change in real income or well-being, with no change in relative prices