Fig A 1 An Indifference Curve Number of

Fig. A. 1 An Indifference Curve Number of Movies 20 per Month 1. If Max gets another concert… +1 G -9 3. For Max, points G and H are on the same indifference curve. 2. he could give up 9 movies and be just as satisfied. +1 11 H -5 +1 -2 J +1 -1 K L 6 4 3 1 2 3 4 5 4. The indifference curve gets flatter moving rightward and downward along the curve. Number of Concerts per Month

Fig. A. 2 An Indifference Map Number of 20 Movies per Month 1. Max prefers any point on this indifference curve…. G 2. to any point on this one 3. And any point on this curve is preferred to any point on the other two. R 11 H S J 6 1 2 3 Number of Concerts per Month

Fig. A. 3 Consumer Decision Making With Indifference Curves Number of Movies per Month 1. Points B and E are affordable. 15 12 A 2. but point D--on a higher indifference curve--is preferred. B 9 3. At Max's best possible point, the budget line and indifference curve are tangent. D 6 3 E 1 2 3 4 5 Number of Concerts per Month

Fig. A. 4 An Increase in Income 30 Number of Movies per Month 1. When Max's income rises to $300, his budget line shifts outward. H'' 15 12 3. But different preferences could lead him to H'' or H'. H 6 D 3 2. If his preferences are shown by these two indifference curves, he'll choose point H. H' 5 6 10 Number of Concerts per Month

Fig. A. 5 Deriving the Demand Curve (a) Number of 15 Movies per Month 10 8 6 at point D. K D 2. But when the price of concerts falls to $10, their condition is satisfied at point J. J 1234567 Price per $30 Concert 25 20 15 10 5 1. When the price of concerts was $30, 10 D 15 (b) J 1234567 K 10 30 Number of Concerts per Month 3. The demand curve shows the quantity of concerts Max chooses at each price for concerts. Number of Concerts per Month