slide 4.1 worthington, economics for business, 2 nd edition © pearson education limited 2006 figure...

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Worthington, Economics for Business, 2nd edition © Pearson Education Limited 2006

Figure 4.1 The utility and marginal utility curves

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Figure 4.2 The marginal utility curve and the demand curve

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Figure 4.3 An indifference curve

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Figure 4.4 The diminishing marginal rate of substitution on an indifference curve

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Figure 4.5 The invalidity of intersecting indifference curves

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Figure 4.6 A budget line

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Figure 4.7 Shift in the budget line following a change in income

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Figure 4.8 The effect of a price change on the budget line

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Figure 4.9 Consumer equilibrium

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Figure 4.10 A corner solution with convex indifference curve

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Figure 4.11 The effect of a change in real income

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Figure 4.12 The effect of a change in the real price of X (Note that good Y could also represent expenditure on all goods other than X)

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Figure 4.13a Derivation of an individual demand curve

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Figure 4.13b Continued

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Figure 4.14 Consumer surplus and dual pricing

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Figure 4.15 The income and substitution effects with a normal good

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Figure 4.16 The income and substitution effects with an inferior good

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Figure 4.17 The consumption of books following a price increase and a compensating variation (using a ‘given bundle of goods’ concept of real income)

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Figure 4.18 The impact of advertising

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Figure 4.19 The characteristics approach to consumer demand: holiday destinations

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Figure 4.20 An increase in the ratio of R to C in destination D2

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Figure 4.21 Combining brands

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Figure 4.22 A fall in the price of D2

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Figure 4.23 Optimal choice of hours worked with flexibility of hours

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Figure 4.24 Fixed daily working hours

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Figure 4.25 An increase in the hourly wage rate, flexibility of hours

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Figure 4.26 An increase in the hourly wage rate, flexibility of hours, backward- bending supply curve

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Figure 4.27 The income and substitution effect of an increase in the wage rate

slide 4.1 worthington, economics for business, 2 nd edition © pearson education limited 2006 figure...

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