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You are a consumer who consumes goods X (education) and goods Y (recreation), where the price...

You are a consumer who consumes goods X (education) and goods Y (recreation), where the price of good X is PX and the price of Y is Py. Your income that can be allocated to purchase these two items is M.

Question

a. What happens if the price of education rises? Describe the substitution effect and the income effect.
b. Derive the demand curve for education.

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