Figure 21-13
-Refer to Figure 21-13. When the price of X is $40, the price of Y is $10, and the consumer's income is $80, the consumer's optimal choice is C. Then the price of X decreases to $10. We can derive the demand curve by determining the change in the quantity demanded illustrated by the movement from

Question

Figure 21-13 
-Refer to Figure 21-13. When the price of X is $40, the price of Y is $10, and the consumer's income is $80, the consumer's optimal choice is C. Then the price of X decreases to $10. We can derive the demand curve by determining the change in the quantity demanded illustrated by the movement from

Quizplus · Accepted Answer

The movement from C to E illustrates the change in the quantity demanded of good X as its price decreases from $40 to $10, while keeping the consumer's income and the price of good Y constant. This shift represents the consumer's adjustment to the new price, moving along the indifference curve to a new optimal choice, which is used to derive the demand curve for good X.

Figure 21-13 -Refer to Figure 21-13. When the Price of X Is