https://gdpark.blog/tags/substitution-effect/Recent content in Substitution Effect on gdpark.blogHugoenTue, 19 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-32-expansion-path/Tue, 19 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-32-expansion-path/Unlike demand theory, firms chasing a fixed output level have zero income effect — just pure substitution — and tracing those cost-minimizing combos as output rises draws out the expansion path.