Given a consumer's indifference map, the demand curve for a good can
A)be derived by moving a consumer's budget constraint as her income falls.
B)be derived by moving a consumer's budget constraint as her income rises.
C)be derived by moving a consumer's budget constraint as the market price of one good changes.
D)not be derived from consumer theory.

Question

Quizplus · Accepted Answer

The demand curve for a good can be derived from a consumer's indifference map by moving the budget constraint as the market price of one good changes. This is because a change in the price of a good alters the budget constraint and shifts the consumer's optimal consumption bundle, resulting in a new demand quantity for the good.

Given a Consumer's Indifference Map, the Demand Curve for a Good