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| kb:sd [2022-01-11 22:38] – [Effects of price change] jaeyoung | kb:sd [2024-04-30 04:03] (current) – external edit 127.0.0.1 | ||
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| This is represented by an inward shift of the budget constraint curve from the compensated demand curve down to one that is actually achievable with the same income, although it will have the same slope. | This is represented by an inward shift of the budget constraint curve from the compensated demand curve down to one that is actually achievable with the same income, although it will have the same slope. | ||
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| + | ==== Giffen good ==== | ||
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| + | For a Giffen good, the effects of price changes are dominated by the income effect, leading to an increase in quantity demanded with an increase in price and therefore an upward sloping demand curve. | ||
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