Different points along a downward-sloping demand curve come from
A) tangencies between indifference curves and budget lines that represent different prices of the good.
B) tangencies between indifference curves and budget lines that represent different income levels.
C) different points along any one budget line when the prices of the goods are held constant.
D) different points along any one indifference curve when the prices of the goods are held constant.

Question

Quizplus · Accepted Answer

Different points along a downward-sloping demand curve are derived from tangencies between indifference curves and budget lines that represent different prices of the good. This reflects how consumers' optimal choices change as the price of the good changes, holding income and the prices of other goods constant.

Different Points Along a Downward-Sloping Demand Curve Come from