Microeconomics I partie 6/9
Fiches de révisions
Fiches de révisions
Set of flashcards Details
| Flashcards | 39 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 06.06.2019 / 02.10.2023 |
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Slutsky equation with calculus 2/2
Slutsky equation with calculus 1/2
Hicks substitution effect
change in demand when prices
change but a consumer’s utility is held constant (consumer is indifferent between the original bundle and the one he can now afford) ! roll the budget line around the indifference curve
Slutsky equation: an example: substitution and income effect
Slutsky equation, an example: Now suppose p1 diminishes to 2. New demand?
16
Slutsky equation: an example
Assume the demand function is: x1(p1;p2;m) = 10 + 1m/10p1
Initially m = 120 and p1 = 3
Initial demand?
14
Change with endowment income effect
Slutsky equation
Quasilinear preferences
only substitution effect
Perfect substitutes: 3 scenari for change in demand
Slutsky decomposition: perfect complements
Subsitution effect = 0
Price effect and income effect with change in price: giffen good
Price effect and income effect with change in price: normal good
Discrete goods
Perfect complements: price offer curve and demand curve
Maximise profit subject to output constraint/technology
Cross price elasticity
Income elasticity
Elasticity and marginal revenue
Constant elasticity demand
Elasticity and total revenue graph
Elasticity and total revenue
Elasticity of a linear demand curve
Elasticity's formula
The extensive and intensive margin
Equivalence of CV and EV in quasi-linear preferences
Equivalent variation graph
Compensating variation graph
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