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and hence so the substitution effect is h₁ (p, u) = = Ә др1 -e(p, u) Əh₁ 3 дрг 4 = = 3 2 2 = 4 V 3³ 4 V 3 2 The Marshallian demand is x1(p, w) = h₁ (p, v(p, w)) is equal to the substitution effect. Therefore, the income effect is 0. = " and hence the total effect

and hence so the substitution effect is h₁ (p, u) = = Ә др1 -e(p, u) Əh₁ 3 дрг 4 = = 3 2 2 = 4 V 3³ 4 V 3 2 The Marshallian demand is x1(p, w) = h₁ (p, v(p, w)) is equal to the substitution effect. Therefore, the income effect is 0. = " and hence the total effect

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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and hence so the substitution effect is h₁ (p, u) = Ə др1 -e(p, u) მh1 3 др2 = = 3 2 1 2 = 4 33 4 V 3 2 The Marshallian demand is x₁(p, w) = h₁ (p, v(p, w)) = /1/₁1 √√A is equal to the substitution effect. Therefore, the income effect is 0. and hence the total effect
Transcribed Image Text:and hence so the substitution effect is h₁ (p, u) = Ə др1 -e(p, u) მh1 3 др2 = = 3 2 1 2 = 4 33 4 V 3 2 The Marshallian demand is x₁(p, w) = h₁ (p, v(p, w)) = /1/₁1 √√A is equal to the substitution effect. Therefore, the income effect is 0. and hence the total effect
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