Ordinary Goods and Giffen Goods

Let us now consider price changes. Suppose that we decrease the price of good 1 and hold the price of good 2 and money income fixed. Then what can happen to the quantity demanded of good 1? Intuition tells us that the quantity demanded of good 1 should increase when its price decreases. Indeed this is the ordinary case, as depicted in Figure 6.9.

Indifference curves

Optimal choices

Indifference curves

Optimal choices

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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