中级微观经济学Consumers’ Choice 第二部分参考.ppt

Slutsky’s Effects for Income-Inferior Goods Some goods are income-inferior (i.e. demand is reduced by higher income). The substitution and income effects oppose each other when an income-inferior good’s own price changes. Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x1’ Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x1’ Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x2’’ x1’ x1’’ Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x2’’ x1’ x1’’ The pure substitution effect is as fora normal good. But, …. Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x2’’ x1’ x1’’ (x1’’’,x2’’’) The pure substitution effect is as for a normal good. But, the income effect is in the opposite direction. Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x2’’ x1’ x1’’ (x1’’’,x2’’’) The pure substitution effect is as for a normal good. But, the income effect is in the opposite direction. Good 1 is income-inferior because an increase to income causes demand to fall. Slutsky’s Effects for Income-Inferior Goods x2 x1 x2’ x2’’ x1’ x1’’ (x1’’’,x2’’’) The overall changes to demand arethe sums of the substitution and income effects. Giffen Goods In rare cases of extreme income-inferiority, the income effect may be larger in size than the substitution effect, causing quantity demanded to fall as own-price rises. Such goods are Giffen goods. Slutsky’s Effects for Giffen Goods x2 x1 x2’ x1’ A decrease in p1 causes quantity demanded of good 1 to fall. Slutsky’s Effects for Giffen Goods x2 x1 x2’ x1’ x1’’’ x2’’’ A decrease in p1 causes quantity demanded of good 1 to fall. Slutsky’s Effects for Giffen Goods x2 x1 x2’ x2’’ x1’ x1’’ x1’’’ x2’’’ Substitution effect Income effect A decrease in p1 causes quantity demanded of