Concept of demand economics
economics IV full part 2
Today’s LEQ: How do you measure a consumer’s responsiveness to a change in price?
Income and Substitution Effects
Income and Substitution Effects. The Law of Demand: y xbxb xaxa xbxb xaxa x * =x(p x,p y,M) U1U1 U2U2 x x px/pypx/py p x /p y p x ’/p y Slope of budget.
By Muhammad Shahid Iqbal
Responding to Price Changes (Elasticity of Demand & Supply)
