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9. Give an example to illustrate what the income effect is. 10. What is marginal cost? 11. Is there an efficient amount of time to exercise? Explain your answer.
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9) Income effect refers to the change in the consumption due to change in income of a person.

For example if a person X spends his 10% of his income on entertainment and 10% on food but his income decreases which will make him spend less on entertainment due to change in his income also,in another scenario if the price of food goes up,then he will spend less on entertainment which shows the result of income effect on his consumption.

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