To construct an ordinary demand curve for good X,
A) change the price of good X in the consumer choice diagram and observe the change in the quantity of good X among the optimum market baskets.
B) change the prices of both goods in the consumer choice diagram and observe the change in the quantity of good X among the optimum market baskets.
C) change the price of good Y in the consumer choice diagram and observe the change in the quantity of good X among the optimum market baskets.
D) change the consumer's income in the consumer choice diagram and observe the change in the quantity of good X.

Question

Quizplus · Accepted Answer

To construct an ordinary demand curve for good X, we need to observe the change in the quantity demanded of good X as the price of good X changes, while holding constant the prices of all other goods and the consumer's income. This can be done by changing the price of good X in the consumer choice diagram and observing the corresponding change in the quantity of good X demanded among the optimum market baskets.

To Construct an Ordinary Demand Curve for Good X