上海交通大学宏微观经济学课件第八讲.pptVIP

In Active Learning 2, students determined that a fall in income shifts the budget constraint downward. They should readily accept, then, that an increase in income shifts the budget line upward/outward. 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