72.6k views
3 votes
Which of the following may be determined from an individual's demand curve for a good?

1) i. the quantity demanded at a given price, holding all other factors constant
2) ii. the total expenditures on the good at a given price, holding all other factors constant
3) iii. how quantity demanded changes if the price of the good changes, holding all other factors constant

1 Answer

4 votes

Final answer:

An individual's demand curve for a good can determine the quantity demanded at a given price, total expenditures on the good at a given price, and how quantity demanded changes with price.

Step-by-step explanation:

From an individual's demand curve for a good, the following may be determined:

The quantity demanded at a given price, holding all other factors constant: The demand curve shows the different quantities that individuals are willing and able to buy at various prices.

The total expenditures on the good at a given price, holding all other factors constant: The demand curve can be used to determine the total amount spent on the good at a specific price point by multiplying the quantity demanded by the price.

How quantity demanded changes if the price of the good changes, holding all other factors constant: The slope of the demand curve represents the responsiveness of quantity demanded to change in price. A steeper slope indicates a more elastic demand, while a flatter slope indicates a more inelastic demand.

User Suiwenfeng
by
6.5k points