Video tutorial: Income and substitution effects

Income and substitution effects explain how people adjust the amounts of goods consumed when relative prices change. The model can be applied to the choice of how many hours to work. Learn more in the free ebooks The Economy, Unit 3.7: https://tinyco.re/TE-3-7 and ESPP, Unit 4.9: https://tinyco.re/ESPP-4-9. CORE is a global community of learners, teachers and researchers that is transforming how economics is learned by bringing recent advances in the field to bear on societal challenges such as the future of work, climate change and inequality, using free interactive online resources and implementing the best new teaching techniques. Find out more at https://www.core-econ.org.