Putting price on the vertical axis and quantity on the horizontal axis, is the Slutsky demand steeper or flatter than the Hicksian demand curve? If I calculate the Slutsky and Hicksian substitution effects for a normal good (Cobb-Douglas), I get Slutsky substitution effect greater than Hicksian substitution effect. Shouldn' t that mean that Hicksian demand is steeper than Slutsky? I have seen the opposite being drawn in some lecture notes.

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  • $\begingroup$ Extent in elasticity doesn't matter in case of Normal Good. $\endgroup$
    – waleed
    Commented Dec 7, 2022 at 11:37


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