and this response is defined as the substitution effect. Then, to
measure the income effect, we restore money income. The consumer
moves from the point to the final point and this response is
defined as the income effect.
A 1 ,
A 1 A 2 ,
and this response is defined as the substitution effect. Then, to
measure the income effect, we restore money income. The consumer
moves from the point to the final point and this response is
defined as the income effect.
A 1 ,
A 1 A 2 ,