Using the figure below, graphically prove that the consumer saves less when his future income increases.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
ChapterD: The Expenditure-output Model
Section: Chapter Questions
Problem 12RQ: Exercise D12 What are the components on which the aggregate expenditure function is based?
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Using the figure below, graphically prove that the consumer saves less when his future income increases. 

C₂
A'
A
C
0
F
I
ci ci
H
E'
E
B
B'
U2
U₁
Figure 6: Increase in future income
C₁
Transcribed Image Text:C₂ A' A C 0 F I ci ci H E' E B B' U2 U₁ Figure 6: Increase in future income C₁
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