Vipul: Created page with "{{price-quantity curve}} ==Definition== An '''income-compensated demand curve''' is a variant of the demand curve for a good, service, or commodity where changes in price a..."

2010-09-12T00:29:51Z

Created page with "{{price-quantity curve}} ==Definition== An '''income-compensated demand curve''' is a variant of the demand curve for a good, service, or commodity where changes in price a..."

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{{price-quantity curve}}

==Definition==

An '''income-compensated demand curve''' is a variant of the [[demand curve]] for a good, service, or commodity where changes in price are accompanied by offsetting changes in income so as to control for the [[income effect]]. Income-compensated demand curves are typically used when we want to isolate the [[substitution effect]] and ignore the [[income effect]].

There are multiple notions of income-compensated demand curve, based on how much offsetting income compensation occurs for a given change in unit price. Two of the most typical notions are:

* [[Hicks income-compensated demand curve]]
* [[Slutsky income-compensated demand curve]]

Income-compensated demand curve - Revision history

Vipul: Created page with "{{price-quantity curve}} ==Definition== An '''income-compensated demand curve''' is a variant of the demand curve for a good, service, or commodity where changes in price a..."