Question 4
[Maximum number: 1]
What is held constant when deriving an individual consumer's downward-sloping demand curve for a product?
A
marginal utility
B
the consumer's income
C
the price of the product
D
total utility
CAIE A-Level Economics 7.1.4 Individual demand curve derivation
Practise deriving individual demand from marginal utility theory and judging what changes when price varies.
How this is tested
- explain the link between a lower price, marginal utility and higher quantity demanded
- state what is held constant when deriving an individual's demand curve from utility theory