Ec100A Ch4 - 4 INDIVIDUAL AND MARKET DEMAND Econ 100A...

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INDIVIDUAL AND MARKET DEMAND 4 Econ 100A Mortimer
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INDIVIDUAL DEMAND Price Changes A reduction in the price of food, with income and the price of clothing fixed, causes this consumer to choose a different market basket. In (a) , the baskets that maximize utility for various prices of food (point A , $2; B , $1; D , $0.50) trace out the price-consumption curve. Part (b) gives the demand curve, which relates the price of food to the quantity demanded. (Points E, G, and H correspond to points A, B, and D, respectively). Econ 100A Mortimer
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