Open main menu
Home
Random
Recent changes
Special pages
Community portal
Preferences
About Wikipedia
Disclaimers
Incubator escapee wiki
Search
User menu
Talk
Dark mode
Contributions
Create account
Log in
Editing
Complementary good
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
===Proof=== The standard [[John Hicks|Hicks]] decomposition of the effect on the ordinary demand for a good <math>x</math> of a simple price change in a good <math>y</math>, utility level <math>\tau^*</math> and chosen bundle <math>z^* = (x^*, y^*, \dots)</math> is <math>\frac{\partial f_x(p, \omega)}{\partial p_y} = \frac{\partial h_x (p, \tau^*)}{\partial p_y} - y^* \frac{\partial f_x(p, \omega)}{\partial \omega}</math> If <math>x</math> is a gross substitute for <math>y</math>, the left-hand side of the equation and the first term of right-hand side are positive. By the symmetry of Mosak's perspective, evaluating the equation with respect to <math>x^*</math>, the first term of right-hand side stays the same while some extreme cases exist where <math>x^*</math> is large enough to make the whole right-hand-side negative. In this case, <math>y</math> is a gross complement of <math>x</math>. Overall, <math>x</math> and <math>y</math> are not symmetrical.
Edit summary
(Briefly describe your changes)
By publishing changes, you agree to the
Terms of Use
, and you irrevocably agree to release your contribution under the
CC BY-SA 4.0 License
and the
GFDL
. You agree that a hyperlink or URL is sufficient attribution under the Creative Commons license.
Cancel
Editing help
(opens in new window)