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Syft

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77 words 6 min read

It has long been observed, though not without some contestation across the relevant literatures, that the demand curve, in most of its conventional specifications, tends, ceteris paribus, to slope downward, a tendency which, it has been variously argued, may be attributable in part to the income effect and in part to the substitution effect, though the precise decomposition thereof has remained, and in many quarters continues to remain, a matter of no small methodological dispute.

ceteris paribus
all else held equal
substitution effect
buyers switch to alternatives
income effect
the same budget buys less
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