Level: Ungrad, Micro

I have a task, http://imgur.com/a/JT4zB I have done some questions. While I can't understand the differences between Slutsky and Hicks approach. I get it theoreticaly, but I don't know what differences would appear during solution. Please help with substitution-income effect calculation.

P.S. I have calculated substitution effect somehow, but I'm not sure wich approach that would be.

Any help is appreciated.


Hicks compensation ensures that the consumer will reach the same utility level after the price/wealth change. (So graphically will be on the same IC)

Slutsky compensation ensure that the consumer can afford the old bundle after the price/wealth change. (so graphically rotates around the old bundle)

So when working out a problem, you can spot the difference when the consumer either has the same utility level, or can afford the same bundle.

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