What approach to economics does georges statement reflect
Macroeconomics
Economist George Stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.”
a. Explain this statement using the concepts of income and substitution effects.
b. Stigler also once wrote that “his objective is not to change the world, but to understand it.” What approach to economics does this statement reflect?
