11a. The Slutsky Equation and Demand Curves

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In this video, I offer a derivation of the Slutsky Equation (an equation that decomposes the Marshallian demand curve's price effect into income and substitution effects). The video intuitively motivates the Slutsky Identity by relating the utility maximization problem to the expenditure minimization problem. For a list of links to videos on this channel (organized by topic), check out my video web page: blog.thisyoungeconomist.com

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