Practice - Deriving a Demand Curve from Indifference Curves and Budget Constraints
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is a budget constraint?
💡 Hint: Think about what a consumer can afford.
What happens to demand when the price of a good decreases?
💡 Hint: Remember the law of demand!
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What happens to the demand curve when the price of a good increases?
💡 Hint: Think about the relationship between price and quantity.
Is the substitution effect positive or negative?
💡 Hint: Remember the consumer's reaction to price changes.
Get performance evaluation
Challenge Problems
Push your limits with advanced challenges
A consumer had a budget of $50. Price of bananas is $5, and mangoes are $2. How many of each can she buy if her preferences are equally aligned?
💡 Hint: Think about combinations that add up to the budget.
If a consumer's utility function shows that they prefer bananas to mangoes, what will happen to their demand if banana prices fall?
💡 Hint: Consider consumer preferences concerning price changes.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.