9 - giffen goods 3 possibilities 1. normal goods a. sub and...

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Chapter 8/9 2 special cases of indifference curves 1. perfect substitutes a. i.e. rate at which you’re willing to give up one good for another is constant 2. perfect complements a. have to e used together to generate utility basically the rest of this class was a shit tone of graphs and some other stuff
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Unformatted text preview: giffen goods 3 possibilities 1. normal goods a. sub and income effects reinforce one another i. P UP Qd DOWN 2. Inferior good a. Sub and income effects work against each other i. P UP lowers your real income and you have to buy more of it...
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