Question

The individual demand curve for good X, which is measured along the horizontal axis, can be obtained by: a. Shifting in a parallel fashion the budget line and examining the points of tangencies with the indifference curves. b. Increasing the price of good X, which rotates the budget line clockwise and examining the ensuing points of tangencies with the indifference curves. c. Decreasing the price of good X, which rotates the budget line clockwise and examining the ensuing points of tangencies with the indifference curves. d. Increasing the price of good X, which rotates counterclockwise the budget line and examining the ensuing points of tangencies with the indifference curves.

Answer 1

c. Decreasing the price of good X, which rotates the budget line clockwise and examining the ensuing points of tangencies with the indifference curve.

Step-by-step explanation:

The indifference curve is the curve on graph which shows 2 commodities which consumer values the same regardless of the price. This is a point on the graph where two goods are of equal value to consumer and the consumer is indifferent of the selection. The individual demand curve for good X is best obtained by decreasing the price of good X, and examine the points of tangencies on indifference curve.