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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 im-plication 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...
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This note was uploaded on 12/08/2010 for the course PYSCH 111 taught by Professor Malley during the Spring '08 term at University of Michigan.
- Spring '08