A demand curve that shows the relationship between the price of a good and the amount of the good consumed holding the consumer's well-being fixed and allowing their to income vary is called:
A) an uncompensated demand curve.
B) a compensated demand curve.
C) a Marshallian demand curve.
D) a derived demand curve.

Question

Quizplus · Accepted Answer

A compensated demand curve accounts for changes in consumer income and holds their well-being constant, while an uncompensated demand curve does not account for changes in income. A Marshallian demand curve refers to a demand curve that does not account for changes in income or well-being. A derived demand curve is a curve that shows the relationship between the price of a good and the quantity demanded by producers who use that good as an input.

A Demand Curve That Shows the Relationship Between the Price