You can use marginal utility theory to find the demand curve by changing
A) only the price of one good.
B) only income.
C) the utility schedule.
D) only the prices of both goods.
E) income and the prices of both goods.

Question

Quizplus · Accepted Answer

Marginal utility theory involves examining how the utility derived from the consumption of goods changes as their quantities change. To find the demand curve for a specific good using this theory, you would change only the price of that one good while holding everything else constant (such as income and the prices of other goods) to see how the quantity demanded varies with price changes. This approach aligns with the ceteris paribus condition, which is crucial for isolating the relationship between the price of a good and the quantity demanded.

You Can Use Marginal Utility Theory to Find the Demand