Consider the graph to the right for some consumer in a very poor society. Her initial income is IO and the initial price of grain is PG1, yielding the budget constraint shown to the right with a slope of - PG1.

    Suppose she chooses bundle A on this constraint consuming GO units of grain. Things get interesting when the price of grain rises moving her to a steeper budget constraint. Her new consumption bundle, B, has her consuming more grain even though its price rose. At an intuitive level it's easy to understand why this happens...

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