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#cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand
Indifference curve analysis lies behind a demand curve. It can be used to examine the effect of price changes and income changes.
If the price of B now falls, the budget line will pivot. The consumer now maximises utility consuming Q3 of product A and Q4 of product B. The fall in the price of product B has led to an increase in the quantity demanded of Q2Q4. This can be shown on a demand curve.
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Subject 5. Revisiting the Consumer's Demand Function
Indifference curve analysis lies behind a demand curve. It can be used to examine the effect of price changes and income changes. If the price of B now falls, the budget line will pivot. The consumer now maximises utility consuming Q3 of product A and Q4 of product B. The fall in the price of product B has led to an increase in the quantity demanded of Q2Q4. This can be shown on a demand curve. There are two different phenomena underlying a consumer's response to a price drop: As the price of a product d
Subject 5. Revisiting the Consumer's Demand Function
Indifference curve analysis lies behind a demand curve. It can be used to examine the effect of price changes and income changes. If the price of B now falls, the budget line will pivot. The consumer now maximises utility consuming Q3 of product A and Q4 of product B. The fall in the price of product B has led to an increase in the quantity demanded of Q2Q4. This can be shown on a demand curve. There are two different phenomena underlying a consumer's response to a price drop: As the price of a product d
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