Income Change Analysis And Income Consumption Curve (Icc) Overview - Edubirdie

University:
Elon University
Course:
ECO 1000: Economics
Academic year:

2023
Views:

66

Pages:

1
Author:

MCerah

Income Change Analysis and Income Consumption Curve (ICC) Overview Px 10 10 M/Px = 8 Py 8 8 M 80 100 x 3,6 4,6 y 5,5 6,75 MUx 18,5 22,25 MUy 14,8 17,8 Umax 108,6 149,35 M/P'x = 10 M/Py = 10 M/P'y = 12.5 y 12,5 10 6,7 5,5 x 3, 64, 6810 Explanation: In the graph above, due to the increase in Income (M) from 80 to 100, the budget line A shifts to the right so that the consumption of goods X and goods Y also increases. Point B is the highest level of satisfaction in consumption because it is in the upper right position. Income can affect the purchase of goods X and goods Y. The greater the income, the more goods X and Y are consumed.

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