In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change
A)income and hold everything else constant.
B)tastes and preferences and hold everything else constant.
C)the price of the product and hold everything else constant.
D)the price of a close substitute and hold everything else constant.

Question

Quizplus · Accepted Answer

To derive an individual's demand curve for salmon, we need to observe what happens to their utility-maximizing bundle when we change the price of the product and hold everything else constant. By doing so, we can see how the consumer reacts to the change in price and how much quantity they demand at each price point, enabling us to draw a demand curve. Changes in income (A), tastes and preferences (B) and the price of a close substitute (D) may all affect the demand for salmon, but they are not sufficient to derive an individual's demand curve.

In Order to Derive an Individual's Demand Curve for Salmon