1. Chapter 5 Applying Consumer Theory

2. © 2004 Pearson Addison-Wesley. All rights reserved5-2 Figure 5.1 Deriving an Individuals Demand Curve

3. © 2004 Pearson Addison-Wesley. All rights reserved Figure 5.2 Effect of a Budget Increase on an Individuals Demand Curve

4. Page 112 Solved Problem 5.1

5. © 2004 Pearson Addison-Wesley. All rights reserved5-5 Figure 5.3 Income-Consumption Curves and Income Elasticities

6. © 2004 Pearson Addison-Wesley. All rights reserved Figure 5.4 A Good that is Both Inferior and Normal

7. © 2004 Pearson Addison-Wesley. All rights reserved5-7 Application (Page 117) Income Elasticities of Demand for Cars

8. © 2004 Pearson Addison-Wesley. All rights reserved5-8 Figure 5.5 Substitution and Income Effects with Normal Goods

9. © 2004 Pearson Addison-Wesley. All rights reserved5-9 Figure 5.6 Giffen Good

10. © 2004 Pearson Addison-Wesley. All rights reserved5-10 Figure 5.7 The Consumer Price Index

11. © 2004 Pearson Addison-Wesley. All rights reserved5-11 Table 5.1 Cost-of-Living Adjustments

12. © 2004 Pearson Addison-Wesley. All rights reserved Figure 5.8 Demand for Leisure

13. © 2004 Pearson Addison-Wesley. All rights reserved5-13 Figure 5.9 Supply Curve of Labor

14. © 2004 Pearson Addison-Wesley. All rights reserved5-14 Figure 5.10 Income and Substitution Effects of a Wage Change

15. © 2004 Pearson Addison-Wesley. All rights reserved5-15 Page 135 Solved Problem 5.3

16. © 2004 Pearson Addison-Wesley. All rights reserved5-16 Page 135 Solved Problem 5.3a

17. © 2004 Pearson Addison-Wesley. All rights reserved5-17 Page 135 Solved Problem 5.3b

18. © 2004 Pearson Addison-Wesley. All rights reserved5-18 Application (Page 136) Leisure- Income Choices of Textile Workers

19. © 2004 Pearson Addison-Wesley. All rights reserved5-19 Figure 5.11 Labor Supply Curve that Slopes Upward and then Bends Backward

20. © 2004 Pearson Addison-Wesley. All rights reserved5-20 Figure 5.11a Labor Supply Curve that Slopes Upward and then Bends Backward

21. © 2004 Pearson Addison-Wesley. All rights reserved5-21 Figure 5.11b Labor Supply Curve that Slopes Upward and then Bends Backward

22. © 2004 Pearson Addison-Wesley. All rights reserved5-22 Figure 5.12 Relationship of Tax Revenue to Tax Rates

23. Cross-Chapter Analysis (Page 146) Child-Care Subsidies