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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Related Book For
Microeconomic Theory Basic Principles And Extension
ISBN: 9781111525538
11th Edition
Authors: Walter Nicholson, Christopher M. Snyder
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