InterdependenceandtheGainsfromTrade幻灯片.pptVIP

17 17 11 17 17 18 11 19 19 13 15 19 8 7 7 10 7 7 11 13 14 15 16 17 7 7 7 7 2 4 4 5 6 6 6 8 12 Consumer Income As income increases the demand for a normal good will increase. As income increases the demand for an inferior good will decrease. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Consumer IncomeNormal Good $3.00 2.50 2.00 1.50 1.00 0.50 2 1 3 4 5 6 7 8 9 10 12 11 Price of Ice-Cream Cone Quantity of Ice-Cream Cones 0 Increase in demand An increase in income... D1 D2 Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Consumer IncomeInfe