Holding your income and the price of lobster constant, you can derive your demand curve for steak from an indifference curve/budget line diagram by determining how your consumption of steak changes when the price of a steak changes.

Question

Quizplus · Accepted Answer

By holding income and the price of lobster constant, the only variable that changes in the indifference curve/budget line diagram is the price of steak, which allows for the determination of the demand curve for steak.

Holding Your Income and the Price of Lobster Constant, You