additional notes

additional notes - because of a change in income, holding...

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25/02/2008 17:05:00 Back to thte effect of a hange I the own price of a good. There are really two  effects that take place. W. Substitution effect- the change in the quantity of a good that a consumer  demands when the goods price changes, holding other prices and the  consumers utility constant Income effect- the chang in the quantity of a good a consumer demands 
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Unformatted text preview: because of a change in income, holding prices constant. The total effect- of a price change is the sum of the income and substitution effects. This know as the slutsky equation 25/02/2008 17:05:00 25/02/2008 17:05:00...
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additional notes - because of a change in income, holding...

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