Q331
Demand curve can be derived from
A.
MU curve
B.
PCC
C.
Both 'a' and 'b'
AnswerD.
None
Answer: Option C
Solution
Answer: Option C
Solution:
Demand curve can be derived from MU curve and PCC. Marginal utility and the law of diminishing marginal utility can be used to provide insight into market demand, the law of demand, and the demand curve. Downward-sloping price consumption curve for a good means that demand for the good is elastic, upward-sloping price consumption curve means that demand for the good is inelastic and horizontal straight-line price consumption curve means that demand for the good is unit elastic.