This preview shows pages 2–4. Sign up to view the full content.
ECON 203 Chapter 4 Slide 4FIGURE 4-1The Price-Consumption Curveand...FIGURE 4-2An Individual Consumer’s Demand Curve4.1 The impact of a price change on the quantity demanded:The “Price-Consumption Curve” and “Demand Curve”ECON 203 Chapter 4 Slide 5Figure 4.3The Income Consumption Curve(ICC)Figure 4.4The Engel CurveThe relationship between Income and the consumption of one good for a consumerQ: How do you calculate the slope of the Engle curve if you know the demand curve X1(p1,p2,M)?4.2 The impact income on demandECON 203 Chapter 4 Slide 6One Way of Categorizing Goods: Normal vs. InferiorA good is said to be “Normal” if its consumption increases when income increasesA good is said to be “Inferior” if its consumption declines when income increases
has intentionally blurred sections.
Sign up to view the full version.