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Microeconomia Intermedia by Varian Hal
This document analyzes the changes that suffer the amounts demanded of a good, due to changes in its price. For this we use the decomposition in Income and Substitution effects posed by Slutsky and Hicks in their work concerning the analysis of the demand. In general, when the price of a good varies the amount also change, according to the relation of the demand function with the price variable, these may increase or decrease depending on the function. In some cases according with the preferences of individuals, the change in the price of a good, it can affect the demand of the other good, depending on the relation between them, it means, there could be a relation of substitutability, complementarity or neutrality between goods that are analyzed. The preferences chosen to develop this document are those of Leontief type fixed proportions - perfect complements , the formulas used of the substitution-effect and the income-effect are proposed by Hal Varian in his text Intermediate Microeconomics Edition 8th Antoni Bosch. Barcelona: Antoni Bosch.
ISBN 13: 9788485855438
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Efectos Sustitución y Renta en el caso de preferencias específicas