The substitution effect measures the change in the quantity demanded of a good as a result of a change in the relative price of the good, and is measured by

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    the difference between the new quantity of the good purchased and the original quantity purchased.
     the difference between the original quantity purchased and the quantity represented by the point of tangency of a budget line with a slope of the original price ratio to the new indifference curve.
     the increased quantity purchased as the consumer moves to a point on the new indifference curve tangent to the new budget line.
     the difference between the original quantity purchased and the quantity represented by the point of tangency of a budget line with a slope of the new price ratio to the original indifference curve.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the difference between the original quantity purchased and the quantity represented by the point of tangency of a budget line with a slope of the new price ratio to the original indifference curve.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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