6.7 In general, uncompensated cross-price effects are not equal. That is, . Use the generalized Slutsky
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6.7 In general, uncompensated cross-price effects are not equal. That is,
.
Use the generalized Slutsky equation to show that these effects are equal if the individual spends a constant fraction of income on each good regardless of relative prices. (This is a generalization of Problem 6.1)
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Related Book For
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324270860
9th Edition
Authors: Walter Nicholson
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