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Unformatted text preview: goods that can be purchased, and thus there is an incentive to buy less. Individuals substitute other goods that could be urchased for this good purchased for this good. – Income effect: the buyer feels poorer and can’t buy as much . • What happens when the price falls?...
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This note was uploaded on 12/20/2010 for the course AEM 25 taught by Professor Poe during the Fall '10 term at Cornell University (Engineering School).
- Fall '10