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In microeconomics, the price effect refers to the total change in the quantity demanded of a good resulting from a change in its price. This effect is decomposed into two components: the *substitution effect* and the *income effect*. Two major approaches are used to analyze this decomposition—Hicksian (compensated) and Slutsky (uncompensated) approaches. Hicksian Approach (Compensated Variation) This approach isolates the substitution effect by adjusting income __________ ___ __________ __________ ________ ____ ________.
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