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EC311 · Intermediate Microeconomics

EC311 / TOPIC 06

3.2 Slutsky: preserve affordability

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What does Slutsky preserve at the compensated point?

When x becomes cheaper, how can we separate the relative-price effect from increased purchasing power?

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?