A Simple Geometry of Income Elasticities


Publication: Journal of Economic Education

Volume: Volume 25, No. 4

Issue: Fall 1994

Pages: pp. 303-308

Author(s): Jerome Heavey (Lafayette College)

Address (Principal Author):Jerome Heavey, Department of Economics and Business, Lafayette College, Easton, PA 18042 (215) 250-5300

Internet Address (Principal Author): hj#2%lafayacs.bitnet@lafibm.lafayette.edu

Title: A Simple Geometry of Income Elasticities

Abstract: This note provides an explanation of how a few straight lines added to the familiar graphical analysis of the income and substitution effects of a price change will show not only whether each of the goods is inferior or normal, but also whether either of the goods is superior.



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