#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
The substitution effect is positive, and the income effect is negative and larger than the substitution effect-consumption of Good X will decrease. These kind of goods are called Giffen goods and they are clearly inferior goods.
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owner: iamcfa - (no access) - 2015 CFA Level 1 Study Schweser Book 2 - Economics, p53