Question: Explain graphically how indifference analysis can be used to derive a demand curve. 3. advanced analysis First, graphically illustrate a doubling of income without price

Explain graphically how indifference analysis can be used to derive a demand curve. 3. advanced analysis First, graphically illustrate a doubling of income without price changes in the indifference curve model. Next, on the same graph, show a situation in which the person whose indifference curves you are drawing buys considerably more of good B than good A after the income increase.

What can you conclude about the relative coefficients of the income elasticity of demand for goods A and B (Chapter 6)?

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