In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximising 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

Deriving an individual's demand curve for salmon requires observing the changes in quantity demanded when the price of the product is varied while holding all other factors constant. This approach is based on the law of demand, which states that as the price of a good increases, the quantity demanded decreases, ceteris paribus. Changes in income or tastes and preferences can affect demand indirectly by shifting the entire demand curve, making it difficult to isolate the effects of price on quantity demanded. The price of a close substitute can also influence demand, but it may be difficult to identify an appropriate substitute for salmon. Therefore, observing the effect of changes in price on quantity demanded is the most appropriate method for deriving an individual's demand curve for salmon.

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