Slutsky and Hicks Decompositions - Ordinary and Superior Good

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[Ordinary and Superior Good] [Ordinary and Inferior Good] [Giffen and Inferior Good]

To change the price of good X from its initial value pxA, slide the blue px-button in the yellow field. You can restore the applet by clicking on the symbol in the upper right corner.

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Made by Dr. Jens Peter Siebel with GeoGebra.

Note that X is not only an ordinary good but also a superior good. We see that the substitution effect and the income effect pull in the same direction.

In general: Any superior good is an ordinary good, but not any ordinary good is a superior good.

Last update: 04/05/2011