How to derive engel curve utilizing consumer choice theory

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Reference no: EM131160475

Suppose you only consume X(axis) and lemons (Y axis)

1) If coconuts are normal good.Graphically illustrate how to derive an Engel curve utilizing consumer choice theory.

2) Suppose at low levels of income,lemons are normal.As one increases the income level,lemons become increasingly sour(turn into inferior goods).Illustrate graphically a representation of this using an Engel curve.(I do not need ypu to show the consumer choice theroy step again,just graph the Engel curve and label which portion is normal and which is inferior)

Reference no: EM131160475

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