Econ 203 chapter 4 slide 4 figure 4 1 the price

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ECON 203 Chapter 4 Slide 4 FIGURE 4-1 The Price- Consumption Curve and... FIGURE 4-2 An Individual Consumer’s Demand Curve 4.1 The impact of a price change on the quantity demanded: The “Price-Consumption Curve” and “Demand Curve” ECON 203 Chapter 4 Slide 5 Figure 4.3 The Income Consumption Curve (ICC) Figure 4.4 The Engel Curve The relationship between Income and the consumption of one good for a consumer Q: How do you calculate the slope of the Engle curve if you know the demand curve X 1 (p 1 ,p 2 ,M)? 4.2 The impact income on demand ECON 203 Chapter 4 Slide 6 One Way of Categorizing Goods: Normal vs. Inferior A good is said to be “ Normal ” if its consumption increases when income increases A good is said to be “ Inferior ” if its consumption declines when income increases
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