Show the effect of a fall in income

Reference no: EM132115715

Question: Boom Time for "Gently Used" Clothes Most retailers are blaming the economy for their poor sales, but one store chain that sells used name brand children's clothes, toys, and furniture is boldly declaring that an economic downturn can actually be a boon for its business. Last year, the company took in $20 million in sales, up 5% from the previous year.

Use a graph of a family's indifference curves for used clothing and other goods. Then draw two budget lines to show the effect of a fall in income on the quantity of used clothing purchased.

Reference no: EM132115715

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