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Results tagged with consumer-theory
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user 18507
the study of consumer choice and its fundamental underpinnings in preferences and constraints.
3
votes
3
answers
3k
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Are Cobb-Douglas preferences monotone according to the marginal utility condition?
I understand that Cobb-Douglas preferences represented by $U(x,y)=x^ay^b$ are strictly monotonic, because increasing at least one of the goods in the bundle increases utility.
However, another definit …
- 217
1
vote
0
answers
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Is the Hicksian demand curve steeper or flatter than Slutsky demand?
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 ef …
- 217