Sustitucion e ingreso

Question

Explique y grafique sustitucion e ingreso utilizando el metodo de Hicks para bienes normales, bienes inferiores, bienes giffen.

Comments

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Understanding substitution and income effects using Hicks' method can feel like managing a busy kitchen! Think of it like running Papa's Pizzeria ( https://papaspizzeriagame.com ) . When the price of flour (an ingredient) changes, you adjust your recipes (substitution effect). How much you earn affects whether you can still afford that extra cheese (income effect). This applies differently to normal, inferior, and Giffen goods. Diagrams clarify these shifts, making the whole concept much clearer. Hope this helps!

Answer 1

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