What approach to economics does georges statement reflect

Reference no: EM13209435

Economist George Stigler once wrote that, according to consumer theory, "if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises."

a. Explain this statement using the concepts of income and substitution effects.

b. Stigler also once wrote that "his objective is not to change the world, but to understand it." What approach to economics does this statement reflect?

Reference no: EM13209435

Questions Cloud

Anticipate how technology will transform business in future : Select a company or organization with which you are familiar and determine which of the five dimensions of the business environment has the biggest impact (either positive or negative) on that company/organization. Explain the rationale behind you..

In the nature via nurture issue : In the nature via nurture issue, nature refers to __________.

Explain what advantages exist when using the model kit : What advantages exist when using the balloons to model molecular shapes? what advantages exist when using the model kit to model molecular shapes

Compute the number of moles of camp : conversion of 20 ATP molecules to cAMP per second. (Assume that each G protein activates a single unique adenylyl cyclase.) Calculate the number of moles of cAMP that are produced per second. Enter your answer to at least two significant figures.

What approach to economics does georges statement reflect : Economist George Stigler once wrote that, according to consumer theory, "if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises."

How to determine the density of the solution : A 100ml sample of sodium bromide containde co104.62g of sodium bromide. upon evaporation, 6.280g of reside was obtained. frome this data calculate each of the folowing for the solution; a density of the solution

Identify five distinct points on the budget line : Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend.

What is the present worth of the profit at an interest rate : Profits from recycling paper, cardboard,aluminum, and glass have increased at a constant rate of $1100 in each of the last 3 years. If this year's profit(end of the year 1) is expected to be $6000 and the profit trend continues through year 5.

Explain the molecular formula of saccharin : Is the molecular formula of saccharin (a) C14H10O6N2S2, (b) C5H7O3NS, (c) C8H9O2NS, or (d) C7H5O3NS?

User Account

All Pages