Figure 5.2(a) shows a consumer's optimal choices of food and clothing for three values of weekly income:

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Figure 5.2(a) shows a consumer's optimal choices of food and clothing for three values of weekly income: I1 = $40, I2 = $68, and I3 = $92. Figure 5.2(b) illustrates how the consumer's demand curve for food shifts as income changes. Draw three demand curves for clothing (one for each level of income) to illustrate how changes in income affect the consumer's purchases of clothing.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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