Using an initial graph set-up like the one found below, graphically derive the demand curve for good 1 by analyzing an increase in the price of good 1 (in other words, use the relationship p0 1 < p00 1 < p000 1 ). Label all budget lines, intercepts, slopes, optimal bundles, and prices.
I. Using an initial graph set-up like the one found below, graphically derive the demandcurve for good 1 by analyzing an increase in the price of good 1 (in other words, usethe relationship p’, <: pf <: pf’). Label all budget lines, intercepts, slopes, optimalbundles, and prices.
