Decompose the Price Effect into Slutsky Substitution and Income effect for an inferior commodity. Use diagram to show the same

To decompose the price effect into the Slutsky substitution effect and the income effect for an inferior commodity, we need to understand these economic concepts clearly. Here's a detailed explanation along with the diagram to illustrate these effects.

### Understanding the Price Effect

The price effect refers to the change in the quantity demanded of a good resulting from a change in its price. This effect is a combination of two distinct effects:
1. Substitution Effect: The change in consumption due to a change in the relative prices of goods, holding utility constant.
2. Income Effect: The change in consumption resulting from the change in the consumer's real income or purchasing power due to the price change.

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