0
How the indifference curve and budget line apparatus are used to derive a consumer's demand curve?
Indifference curve: series of curve reflecting the preference structure of the individual.
Budget constraint: the material resource constraint the individual faces in choices.
The demand curve, being inherently designated as rational, seeks to maximise utility. Thus, in a Walrasian equilibrium, the consumer construct his demand curve at the points where his contract curve equals to his budget constraint (or, in mathematical terms, when the constraint and optimal indifferences are tangent to one another). These tangencies construct a curve which is the individual's demand function.
What else can I help you with?
What is a price consumption line?
A price consumption lines show a consumer's demand for a good or service after price changes. It is draw through the equilibrium of an indifference curve and the budget line
Consumers create a demand for something by?
Consumers create a demand for something by?
What are the factors that affect demand forecasting?
- consumers may not be aware of actual demand in future - answers from consumers are not real - consumer response are biased - plan of consumers change with time
What is demand and quantity of demand?
Demand is a function that defines how much of a certain good are the consumers willing to purchase at a given price.Quantity of demand is the quantity of a certain good the consumers are willing to purchase at a given price, as defined by the function of demand.
Indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't .?
indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't ....
What is a Price line?
A price consumption lines show a consumer's demand for a good or service after price changes. It is draw through the equilibrium of an indifference curve and the budget line
What is a price consumption line?
A price consumption lines show a consumer's demand for a good or service after price changes. It is draw through the equilibrium of an indifference curve and the budget line
Derivation of demand curve using the indifference curve approach?
The derivation of an individual consumer demand curve can be done using the indifference curve approach. This is done by preparing the demand schedule of a consumer from the price consumption curve.
Consumers create a demand for something by?
Consumers create a demand for something by?
What is the similarity between a demand schedule and a budget line?
Both a demand schedule and a budget line represent the relationship between quantities consumed and prices, helping to illustrate consumer choice. A demand schedule lists the quantity of a good that consumers are willing to buy at different price levels, while a budget line shows the combinations of goods that a consumer can afford given their income and the prices of those goods. Both tools are essential in understanding how consumers allocate their resources based on preferences and constraints.
Law of demand and supply?
Consumers is the law of supply and demand.
What are the factors that affect demand forecasting?
- consumers may not be aware of actual demand in future - answers from consumers are not real - consumer response are biased - plan of consumers change with time
What is demand and quantity of demand?
Demand is a function that defines how much of a certain good are the consumers willing to purchase at a given price.Quantity of demand is the quantity of a certain good the consumers are willing to purchase at a given price, as defined by the function of demand.
Indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't .?
indifference curve analysis is not much in use because it only tells us that demand curve has a negative slope except when they don't ....
Is individual demand curve and market demand curve same for identical consumers?
NO
For consumers when there is the goods they want to buy?
demand
What is the relationship between the demand-side and the federal budget deficit?
Describe the relationship between demand-side economics and the federal budget deficit.
