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Income and Substitution Effects

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Uploaded on Mar 4, 2011

The spreadsheet for this video is the 4th one in the workbook you can download here. http://goo.gl/dbR89 The standard Slutsky decomposition of the effect of a price change into a substitution effect and an income effect. There is an error at the 2:06 mark with the sentence that starts, "Overall...." It should say Overall, there is less good X. Please check out my new site, Ask The Prof, http://asktheprof.blogspot.com/, to pose your questions that aren't answered by the videos.

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