How to read this
The grey area is what the consumer can choose: bundles that are technically feasible (in ) and affordable. An income (B1) and an endowment sold at market prices (B2) can give the same set, but a price change works differently.
- Move (the blue line): under (B1) the line turns about the point where all money goes on good 2, under (B2) about , which stays affordable.
- Try Two-part tariff and Whole units of good 2: the set is no longer convex.
- Click the plot to test a bundle.