ECON 20 Chapter Notes - Chapter 7: Veblen Good, Budget Constraint

20 views3 pages

Document Summary

Chapter 7 responding to changes in income and prices. Changes in income are likely to change how much you decide to spend on the things you buy. The same is true for changes in prices. When a person"s income increases, more bundles of goods and services become affordable. When income decreases, fewer bundles are affordable, and consumers will probably have to cut consumption of some things. We represent these changes by shifting the entire budget line to show each new range of options available to the consumer. Let"s look at what happens when cody gets for his birthday from his. Let"s say he decides to use all of his money this month including the birthday. With the extra cash, he can buy six tickets instead of only four. If he decided to buy only movie tickets instead, he could afford four more than. As a result, cody can buy more movie tickets or more concert tickets (or more of.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions