In terms of indifference curves, a demand curve is generated by changes in:
A) income.
B) utility.
C) the price of one good.
D) the price of both goods simultaneously.

Question

Quizplus · Accepted Answer

A demand curve is generated by changes in the price of one good, while holding constant the price of the other good(s) and the consumer's income. The slope of the demand curve reflects the consumer's willingness to pay for an additional unit of the good as the price of the good changes. Indifference curves, on the other hand, measure the consumer's preferences between two goods for a given level of utility.

In Terms of Indifference Curves, a Demand Curve Is Generated