ChapterFourDemand2009年诺贝尔经济学奖因为经济治理.ppt

? 2008 Pearson Addison Wesley. All rights reserved. 4-* Income and Substitution Effects with a Normal Good Because indifference curves are convex to the origin, the substitution effect is unambiguous: Less of a good is consumed when its price rises. A consumer always substitutes a less expensive good for a more expensive one, holding utility constant. The substitution effect causes a movement along an indifference curve. ? 2008 Pearson Addison Wesley. All rights reserved. 4-* Income and Substitution Effects with a Normal Good The direction of the income effect depends on the income elasticit