Documents Chapter Eight Slutsky Equation. Effects of a Price Change u What happens when a commodity’s price....

Slide 1 Chapter Eight Slutsky Equation Slide 2 Effects of a Price Change u What happens when a commodity’s price decreases? –Substitution effect: the commodity is relatively…

Documents Chapter Eight Slutsky’s Equation. Effects of a Price Change u What happens when the price of a...

Slide 1 Chapter Eight Slutsky’s Equation Slide 2 Effects of a Price Change u What happens when the price of a commodity decreases? u First, the commodity becomes relatively…