the compound commodity. We find that there is a serious aggregation problem implying that the property of a downward …-sloping demand curve does not generally hold for the demand of a compound commodity. Notably, both substitution effects of the unit … cost and of the proportional cost for a compound commodity may be unambiguously opposed. Finally, we apply these results to …

the compound commodity. We find that there is a serious aggregation problem implying that the property of a downward …-sloping demand curve does not generally hold for the demand of a compound commodity. Notably, both substitution effects of the unit … cost and of the proportional cost for a compound commodity may be unambiguously opposed. Finally, we apply these results to …