Chapter Eight Slutsky Equation. Effects of a Price Change u What happens when a commodity’s price decreases? –Substitution effect: the commodity is relatively.
Chapter Eight Slutsky’s Equation. Effects of a Price Change u What happens when the price of a commodity decreases? u First, the commodity becomes relatively.
Course: Microeconomics Text: Varian’s Intermediate Microeconomics.
Lecture 3: Inferences using Least-Squares. Abstraction Vector of N random variables, x with joint probability density p(x) expectation x and covariance.