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EC311 · Intermediate Microeconomics

EC311 / TOPIC 07

3.3 Hicks and compensated demand

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How does Hicks isolate a price effect while preserving original utility?

How much income maintains the same utility after prices change?

EC311 / GRAPHTry changing a value

1 Predict → 2 Try → 3 Explain → 4 Challenge

How does a price change pivot the budget?

Illustrative model numbers, not Thailand or current economic data.

When the X price rises with income and the Y price fixed, how does chosen X change in this example?