Note, on the graph to the left, we illustrate equal size income changes at different levels of income. The movement from I₁ to I₂ is the same in income size as that from I₁ to I₂, but the quantity response Q₁ to Q₂ is much smaller than Q₁ to Q₂. The response to increases in income is larger the higher the income, as one would expect for a luxury good.

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