https://gdpark.blog/tags/income-effect/Recent content in Income Effect on gdpark.blogHugoenSat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-19-substitution-effect-income-effect-inferior-goods-and-giffen/Sat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-19-substitution-effect-income-effect-inferior-goods-and-giffen/We break down what actually happens when a price drops — splitting that bump in consumption into the substitution effect and the income effect, then going deep on inferior and Giffen goods.https://gdpark.blog/posts/microeconomics-20-backward-bending-labor-supply-curve/Sat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-20-backward-bending-labor-supply-curve/As wages rise you work more — until you don’t: here’s why the labor supply curve bends backward once you’d rather enjoy your money than grind 24/7.