Scarcity and productivity II
Materials for class on Wednesday, January 24, 2018
Income and substitution effects
Again, it can be hard to wrap your head around how income and substitution effects work, especially since indifference curves are generally imaginary.
This video is an extremely helpful demonstration of how to find income and substitution effects for normal and inferior goods:This one is really good too.
Additional references to things brought up in class
Feedback for today
Go to this form and answer these three questions (anonymously if you want):
- What new thing did you learn today?
- What was the most unclear thing about today’s class?
- What was the most exciting thing you learned today?