第二十一章消费者选择理论.pptVIP

Instead of merely showing students the diagram for the case where one of the goods is inferior, let’s just remind them of the definition and see if they can figure out how to draw the diagram. In Active Learning 2, students determined that an increase in the price of a good pivots the budget constraint inward. Here, the price of a good is falling, so the budget line pivots outward. * On the previous slide, the fall in the price of fish caused a net decrease in Hurley’s demand for mangos: the substitution effect is greater than the income effect, as depicted on the following slide. How