An individual's demand curve for X
A) shows that the income effect is always negative.
B) depends on how the individual's utility-maximizing choices change when the price of X changes.
C) depends on how the individual's money income changes when the price of X changes.
D) depends on how the individual's preferences change when the price of X changes.
E) both a and c

Question

Quizplus · Accepted Answer

An individual's demand curve for a good, such as X, is derived from how their utility-maximizing choices change when the price of that good changes, holding other factors constant. This reflects the relationship between the price of the good and the quantity demanded.

An Individual's Demand Curve for X