Question: Eugen Slutsky devoted a considerable amount of time to study the effect of a change in price of a commodity the quantity demanded. a. State

Eugen Slutsky devoted a considerable amount of time to study the effect of a change in price of a commodity the quantity demanded.

a. State and explain the general form of Slutsky equation.

b. Using the equation and calculus generally define the following economic terms:

i. Normal Good

ii. Gross Substitute

iii. Giffen Good

iv. Inferior good.

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