Indifference Curve Analysis
 

 

 


相關內容
<1> Preference & Utility
<2>

Diminishing marginal rate of substitution

<3> Indifference curve & its properties
<4> Special Cases (I)
<5> Special Cases (II)
<6> Budget constraints
<7> Consumer optimal & corner solution
<8> Real Income & Utility
<9> Income effect
<10> Substitution effect
<11> Price effect
<12> Price effect - Decomposition
<13> Giffen Good

 

 

 

 

 

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Substitution Effect


Substitution effect refers to the change in quantity consumed due to the change in relative price, holding real income constant.

Substitution effect 是在「實質所得」不變的情況下,「相對價格」改變所帶來的消費數量改變。


Substitution effect is always negative

在實質所得不變的情況,若 Good X 的相對價格上升,Good X 的消費數量將下降;反之,若相對價格下降,消費數量上升。簡單來說,「相對價格」和「消費數量」是反向關係 (negative relationship)。

這關係可以 indifference curve 顯示:

 


Econman (14 / 9 / 2000)