Chapter 7: Income and Substitution Effects in Consumer Goods Markets

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Income Effects for Inferior and Normal Goods

- Optimal Choices under 2 Budget Constraints

Income Effects for Necessities and Luxuries

- Optimal Choices under 2 Budget Constraints

The Impact of Changing Opportunity Costs on Behavior

Substitution Effects in the Cayman Islands

Substitution Effects - How Large are Substitution Effects

The Degree of Substitutability and the Size of Substitution Effects

Income and Substitution Effects

when Gasoline is a Normal Good

Income and Substitution Effects when Gasoline is an Inferior Good

Regular Inferior Goods and Giffen Goods

Income and Substitution Effects for Pants and Shirts

Inferring the Type of Good from Observed Choices

Maximizing Utility with Budgets Fixed (a) versus Minimizing Expenditure with Utility Fixed (b)

The Impact of Changing Opportunity Costs on Behavior

The Size of Substitution Effects and Elasticity of Substitution

Different Elasticities of Substitution

Income and Substitution Effects when Tastes are Homothetic

Price Changes: Income and Substitution Effects Combined