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Question: q5 answer the following a the income effect of a...

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Q5. Answer the following: (a) The income effect of a 20 % increase in housing rents is larger than the effect of a 20 % increase in the price of salt. True or false. Explain. (b)Which of the following are more likely to have a positive cross elasticity of demand: pencils and papers, an IBM PC or a DELL PC, or automobiles and gasoline?

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