Term
| Uncompensated Price Change |
|
Definition
| A price change with no change in income. |
|
|
Term
|
Definition
| A price change and an income change which, together, leave the consumer’s wellbeing unaffected. |
|
|
Term
|
Definition
| The change in consumption that results from the change in relative prices. |
|
|
Term
|
Definition
| The change in consumption that results from a change in purchasing power. |
|
|
Term
|
Definition
| A good for which the price and quantity demanded have a positive relationship. |
|
|
Term
| Three Requirements for a Giffen Good |
|
Definition
It must be an inferior good.
It must have no close substitutes.
It must consume a large part of the budget. |
|
|
