Question

In order to derive an individual's demand curve for salmon, we would observe what happens to

a. the utility-maximizing bundle when we change the price of a close substitute and hold everything else constant.
b. the price of the product and hold everything else constant.
c. tastes and preferences and hold everything else constant.
c. income and hold everything else constant.

Answer 1

Answer: Option (b) is correct.

Step-by-step explanation:

We know that the demand curve represents the relationship between the price of the product and Quantity demanded for the product.

There is a inverse relationship between the price and quantity demanded.

According to the law of demand, if the price of a commodity increases, holding the other factors constant, as a result demand for that commodity decreases.

So, in order to derive an individual's demand curve for salmon, we would observe what happens to the price of the product and hold everything else constant.

Answer 2

The correct answer is option b.

Step-by-step explanation:

Law of demand says that the there is an inverse relationship between quantity demanded of a commodity and its price, keeping other things constant.

The other factors here are price of substitutes, income level, tastes and preferences etc.

The individual demand curve shows the quantity demanded of a commodity at different price levels.

In this case, to derive individual's demand curve for salmon, we need to observe changes in the utility maximizing bundles when price of the product i.e salmon is changed, keeping other factors constant.