=+c. Apples represent a relatively small expenditure category for most consumers, which means that income effects are
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=+c. Apples represent a relatively small expenditure category for most consumers, which means that income effects are probably very small. In light of that, you may assume that the amount of income devoted to apple consumption is always an amount that gets the consumer to the same indifference curve in the “slice” of tastes that holds all goods other than x1 and x2 fixed.
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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