# Questions tagged [slutsky-equation]

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### Calculate income and sustitution effect from utility funcion

Utility function $U(x_1 , x_2) = x_1 + 4 * x_2$ $p_1 = 3, p_2 = 8, m =120$ $p_2$ changes from $8$ to $10$ How can I calculate the income and substitution effect. I first thought about calculating ...
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### Confusion regarding the Slutsky equation

I'm reading Henderson and Quandt's Microeconomic Theory textbook and in the derivation process of the slutsky equation the final formula confused me a bit. The first term on the right of the equation ...
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### substitution effect in slutsky equation

We know Slutsky equation decomposes the price effect into substitution effect and income effect, where the substitution effect is the partial derivative of Hicksian demand function against the change ...
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Consider a simple quasi-linear utility function of the form $U(x,y)=x +ln(y)$. For this problem, assume that you have “enough” income, so that the optimal consumption bundle is where: $x,y >> 0$....
We have the utility function $$U(x,y)=x + y$$ and we have to derive the substitution and income effects using Slutsky equation. But after I derive the Hicksian demand functions for e.g. x: h_x= \...