The demand function for good C is derived from the utility function,U = C^$\alpha$M^$\alpha$-1 depends upon:

Question

Quizplus · Accepted Answer

The demand function for good C depends only on the consumer's income and the price of C, as given by the term U1P1 in the utility function. The other terms in the utility function involve other goods (F1, S1, M) and their respective prices, but they do not determine the demand for good C.

The Demand Function for Good C Is Derived from the Utility