Question: what is the basic difference between hicksian and slutsky approach of decomposition?
Answer: Summarising, In Hicks effect, The consumer returned to the same satisfaction level or the Previous IC ,i.e; IC¹ while in slutsky effect the consumer will return to the same combination e.g; if he was purchasing 5 apples and 6 bananas, he'll again purchase the same combination with fall in the price and with ...