Positivesubstitutioneffect

Substitution effect is always positive. ... Giffen goods are highly inferior for which the negative income effect outweighs the positive substitution effect.

2023年6月21日 — We will see that the income effect can be either positive or negative, but the substitution effect is always negative (assuming well-behaved ...

We assume that for most goods the income effect will be either positive or zero, but not negative: if your income increased, you would not choose to have less ...

2023年9月25日 — The substitution effect describes how consumption is impacted by price changes or increases in a consumer's relative income. As income increases ...

The substitution effect, which is due to consumers switching to cheaper products as prices increase, can be both positive and negative for consumers.

Hence, the substitution effect of an increase in a good's own price is always non-positive, and is strictly negative whenever any substitution is possible.

When p1 goes up the Substitution Effect will always be non-positive (i.e., negative or zero). The Income Effect is the effect due to the change in real income.