Consumers choice: Demand
7 important questions on Consumers choice: Demand
What is the Marshallian Demand curve?
What is the substitution effect?
is always negative
What is Giffen's paradox?
Does Giffen good actually exist?
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What are the 2 approaches of compensated demand curve?
2. Holding U and Py constant (Hicksian or compensated deman curve)
What is an uncompensated demand curve?
U goes up if Px goes down
responses to change in P includes SE's and IE's
What is Shepperd's lemma
What is the enveloppe theorem?
one of the major applications of the implicit function theorem
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