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Chapter 5
Applying Consumer Theory
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Figure 5.1 Deriving an Individual’s Demand Curve
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Figure 5.2 Effect of a Budget Increase on an Individual’s Demand Curve
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Page 112 Solved Problem 5.1
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Figure 5.3 Income-Consumption Curves and Income Elasticities
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Figure 5.4 A Good that is Both Inferior and Normal
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Application (Page 117) Income Elasticities of Demand for Cars
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Figure 5.5 Substitution and Income Effects with Normal Goods
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Figure 5.6 Giffen Good
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Figure 5.7 The Consumer Price Index
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Table 5.1 Cost-of-Living Adjustments
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Figure 5.8 Demand for Leisure
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Figure 5.9 Supply Curve of Labor
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Figure 5.10 Income and Substitution Effects of a Wage Change
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Page 135 Solved Problem 5.3
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Page 135 Solved Problem 5.3a
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Page 135 Solved Problem 5.3b
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Application (Page 136) Leisure-Income Choices of Textile Workers
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Figure 5.11 Labor Supply Curve that Slopes Upward and then Bends Backward
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Figure 5.11a Labor Supply Curve that Slopes Upward and then Bends Backward
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Figure 5.11b Labor Supply Curve that Slopes Upward and then Bends Backward
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Figure 5.12 Relationship of Tax Revenue to Tax Rates
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Cross-Chapter Analysis (Page 146) Child-Care Subsidies