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Copied from main article: CRETOG8( t/ c) 03:59, 12 November 2009 (UTC)
(note that the above is not completely true as the change in price also contains an income effect as the consumer now has a different level of utility, if a pure substitution effect is to be considered all income effects need to be removed by fixing utility at old levels then finding how much of good x and y would be consumed. The difference between the two would be the substitution effect, the rest would be from the income effect) [1]
FYI, Substitution effect redirects to Substitute good, while Substitution Effect redirects to Consumer choice. Not sure which is the better redirect but they should both go to the same location. Morphh (talk) 17:39, 5 March 2014 (UTC)
![]() | This page is an archive of past discussions. Do not edit the contents of this page. If you wish to start a new discussion or revive an old one, please do so on the current talk page. |
Copied from main article: CRETOG8( t/ c) 03:59, 12 November 2009 (UTC)
(note that the above is not completely true as the change in price also contains an income effect as the consumer now has a different level of utility, if a pure substitution effect is to be considered all income effects need to be removed by fixing utility at old levels then finding how much of good x and y would be consumed. The difference between the two would be the substitution effect, the rest would be from the income effect) [1]
FYI, Substitution effect redirects to Substitute good, while Substitution Effect redirects to Consumer choice. Not sure which is the better redirect but they should both go to the same location. Morphh (talk) 17:39, 5 March 2014 (UTC)