Unformatted text preview: q , D ( p;Y ). What is the income elasticity of q ? (d) You probably know already that quasilinear preferences have an important implication for the Slutsky Decomposition: If the price changes, demand changes only because of the Substitution E±ect. Can you show that this is the case? Use either a graph or the formal decomposition into elasticities. 1...
View
Full Document
 Summer '08
 Malley

Click to edit the document details