Copyright (c) Christopher Makler / econgraphs.org

{{ ('varian' == params.textbook && 'pivot' != params.slutskyApproach) ? 'Hicks' : 'Slutsky' }} Decomposition: {{ model.utility.title }}


utility
u(x,y) = {{ model.utility.formula(false) }}
\alpha = {{params.alpha | number: 2}}:
r = {{model.utility.r | number: 2}}:

\text{Initial State }({{ notation.slutskyInitial }}) \text{Decomposition Bundle }({{ notation.slutskyDecomposition }}) \text{Final State }({{ notation.slutskyFinal }}) {{ notation.pccLabel }}_{{ notation.xSubscript }} {{ notation.iccLabel }}_1 {{ notation.iccLabel }}_2 \text{Income and substitution effects on {{ notation.xGoodLabel }} } \text{Income and substitution effects on {{ notation.yGoodLabel }} } \text{Indifference Curves}

\text{Substitution effect: }{{ notation.slutskyInitial }} \rightarrow {{ notation.slutskyDecomposition }}

\text{Income effect: }{{ notation.slutskyDecomposition }} \rightarrow {{ notation.slutskyFinal }}