6.7 In general, uncompensated cross-price effects are not equal. That is, @xi @pj 6 @xj @pi :...

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6.7 In general, uncompensated cross-price effects are not equal. That is,

@xi

@pj 6ΒΌ @xj

@pi

:

Use the 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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Microeconomic Theory Basic Principles And Extension

ISBN: 9781111525538

11th Edition

Authors: Walter Nicholson, Christopher M. Snyder

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