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Old 05-19-2011, 07:24 AM   #1
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Default chi flat iron limited edition in Figure 21-7

bination of Pepsi and pizza. In other words, the consumer can now reach a higher
indifference curve. Given the shift in the budget constraint and the consumer's
preferences as represented by his indifference curves, the consumer's optimum
moves from the point labeled "initial optimum" to the point labeled "new opti-
mum."
Notice that,wholesale Tampa Bay Lightning jerseys, in Figure 21-7,equipment needed for p90x workout, the consumer chooses to consume more Pepsi and
more pizza. Although the logic of the model does not require increased consump-
tion of both goods in response to increased income,chi flat iron limited edition, this situation is the most com-
mon one. As you may recall from Chapter 4,christian dior shoes for women, if a consumer wants more of a good
when his income rises,new beats by dr dre, economists call it a normal good. The indifference curves normal good
in Figure 21-7 are drawn under the assumption that both Pepsi and pizza are nor- a good for which an increase in
mal goods. income raises the quantity demanded
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