Question

In considering consumer demand for a good it is reasonable to expect that: i. demand curves for a given good are identical between consumers ii. demand curves for a given good differ between consumers iii. an individual has identical demand curves for different goods iv. an individual has different demand curves for different goods?

1) i and iii
2) ii and iv
3) i and iv
4) ii and iii

Answer 1

Demand curves differ among consumers due to unique preferences and circumstances and individuals also have different demand curves for different goods based on their utility from each item.

Step-by-step explanation:

In considering consumer demand for a good, it is reasonable to expect that demand curves for a given good differ between consumers (ii), and that an individual has different demand curves for different goods (iv). This is because demand curves reflect the relationship between quantity demanded and price, holding other factors constant (ceteris paribus). However, each consumer has unique preferences, income levels, and circumstances that affect their willingness to pay for a good, thereby leading to different demand curves. Moreover, a single individual will value different goods in different ways based on their utility, resulting in distinct demand curves for each item.