ECSENOMICS Appendix 5 Geometrical Analysis of Consumer Equilibrium McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Appendix 5 Geometrical Analysis of Consumer Equilibrium
ECSENOMICS Indifference Curves for a pair of goods T43 Figure 5A-1 A Consumers Indifference Curve Indifference Combinations 5 Food Clothing A 6 C D 1l2 McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Indifference Curves for a Pair of Goods T-43 Figure 5A-1
ECSENOMICS A Family of Indifference Curves T44 Figure 5A-2 C 6 B 2 U D UUU F 0 McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. A Family of Indifference Curves T-44 Figure 5A-2
ECSENOMICS Income Constrains Consumer Spending T-45 Figure 5A-3 A Consumer 's Budget Line Alternative Consumption Possibilities Food Clothing 0 1l/2 3 Consumer's budget line 0 Food McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Income Constrains Consumer Spending T-45 Figure 5A-3
ECSENOMICS Consumers Most Preferred and Feasible t Consumption Bundle Is Attained at B T46 Figure 5A-4 Consumer's equilibrium C uUUU 6 Food McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Consumer’s Most Preferred and Feasible Consumption Bundle Is Attained at B T-46 Figure 5A-4
ECSENOMICS Effect of Income Change on Equilibrium T47 Figure 5A-5 2 U U M Food McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Effect of Income Change on Equilibrium T-47 Figure 5A-5
ECSENOMICS Effect of Price Change on Equilibrium 148 Figure 5A-6 B F Food McGraw-Hilllrwin Copyright@ 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Effect of Price Change on Equilibrium T-48 Figure 5A-6