Question:

Which of the following statements is true

A.

hicksian substitution effect is greater than slutsky substitution effect

B.

slutsky substitution effect is greater than hicksian substitution effect

C.

hicksian substitution effect is same and equal to slutsky substitution effect

D.

hicksian substitution effect is the reverse of slutsky substitution effect

Answer» b. slutsky substitution effect is greater than hicksian substitution effect