Principles of Microeconomics / Unit 5 MIC 0416 short lesson, about 20 seconds
From Utility to the Individual Demand Curve
Captions available
The idea
Change one good's price, keep income and other prices fixed, and find the best bundle at each price. Plotting each price against the quantity chosen traces the consumer's demand curve for that good.
In practice
Three prices, three best bundles, three points on one curve.
Where people slip
Utils are never observed; prices and quantities are, which is why the demand curve survives doubts about measuring utility.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it