Slutsky equation

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In microeconomics, the Slutsky equation (or Slutsky identity), named after Eugen Slutsky, relates changes in Marshallian (uncompensated) demand to changes in Hicksian (compensated) demand, which is known as such since it compensates to maintain a fixed level of utility.

Excerpt from the Wikipedia article “Slutsky equation”, under the CC BY-SA 4.0 license. Read the article on Wikipedia

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