Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

(a)[12]

Discuss whether demand schedules and budget line diagrams are alike in the way they show the effect of

  • a price increase for a good [6]
  • an income increase for a consumer. [6]
(b)[13]

Analyse what is meant by the equi-marginal principle of consumer demand and whether it can be linked to the derivation of a market demand curve.

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