Chapter Eight Slutsky Equation Slutsky 方程. Effects of a Price Change u What happens when a...

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Effects of a Price Change –Income effect （收入效应） : the consumer’s budget of $y can purchase more than before, as if the consumer’s income rose, with consequent income effects on quantities demanded.

Chapter Eight Slutsky Equation Slutsky 方程. Effects of a Price Change u What happens when a...

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Chapter Eight Slutsky Equation. Effects of a Price Change u What happens when a commoditys price decreases? –Substitution effect: the commodity is relatively