Fig. 1 The Budget Constraint

1
Fig. 1 The Budget Constraint
A
B
H
G
2
Fig. 2a Changes in the Budget Line
3
Fig. 2b Changes in the Budget Line
4
Fig. 2c Changes in the Budget Line
5
Fig. 3 Total and Marginal Utility
Total Utility
Marginal Utility
6
Fig. 4 Consumer Decision Making
G
7
Fig. 5 Effects of an Increase in Income
H''
H'
8
Fig. 6 Deriving the Demand Curve
K
J
D
D
J
K
9
Fig. 7 Income and Substitution Effects
Price Decrease
Substitution Effect
P
QD
Þ
QD
QD
if normal
Purchasing Power
QD
if inferior
Price Increase
Substitution Effect
P
QD
Þ
QD
QD
if normal
Purchasing Power
QD
if inferior
10
Fig 8a From Individual to Market Demand
(a)



c
C'
C''
Number of Bottles per Week
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Fig 8b From Individual to Market Demand
(b)
A
B
C
D
E
12
Fig. 9 Time Allocation
F
E
D
C
C