The Rotterdam model can be used to estimate one form of this quantity, for which Richard Stone was the first to empirically derive a linear expenditure system. For a firm in a perfectly competitive market, this quantity is infinitely elastic. (10[4]-5[2])The (10[1])Slutsky (10[1])equation (10[3]-5[1])relates (-5[1])the Marshallian (10[1])form (10[1])of this (10[1])quantity (10[7])to its (10[1])Hicksian form (-5[1])by accounting (-5[1])for (10[1])the substitution (10[1])and (10[1])income effects. (10[3]-5[1])The cross (10[1])elasticity (10[3])of this quantity (10[1])measures (10[1]-5[1])its sensitivity (10[3]-5[1])to changes in a different good’s price. (10[3])For Veblen (10[1])goods, (10[1])this quantity (10[2])[emphasize] (10[1])increases as price (10[3])increases, often due to (10[1])the (10[1])value (-5[1])of those (10[1])goods as status (10[3])symbols. For 10 points, what quantity is defined as consumers’ (10[1])willingness and (10[1])ability to buy a certain (10[3])good? (10[5])■END■