Talk:Consumer choice/Archives/2014

substitution effect

Copied from main article: CRETOG8(t/c) 03:59, 12 November 2009 (UTC)

(note that the above is not completely true as the change in price also contains an income effect as the consumer now has a different level of utility, if a pure substitution effect is to be considered all income effects need to be removed by fixing utility at old levels then finding how much of good x and y would be consumed. The difference between the two would be the substitution effect, the rest would be from the income effect) [1]

Thanks, I didn't phrase my question very well. I'll try to simplify. Let's say you make widgets out of two parts (A & B). The price of A comes down substantially. Would you expect the price of B to move down as a result? I'm not looking for a direct answer so much as some leads on where I should look. 24.80.5.149 (talk) 04:44, 19 November 2009 (UTC)

FYI, Substitution effect redirects to Substitute good, while Substitution Effect redirects to Consumer choice. Not sure which is the better redirect but they should both go to the same location. Morphh ^(talk) 17:39, 5 March 2014 (UTC)