Page 7 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 7
Session Unit 4:
14. Topics in Demand & Supply Analysis, p. 1
LOS 14.b: Compare substitution and income effects., p. 7
3 Scenarios!
Total Net Price Effect of a Price Decrease (say for X) = Substitution Effect + Income Effect
+ for Normal goods –home/car? – for inferior goods – Car type?
I curve never get to Y/X axis: why?
A Giffen good -ve IE > +ve SE!
