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As soon as we area which rate-consult matchmaking from Maggie is found with the graph, we obtain the brand new demand bend

As soon as we area which rate-consult matchmaking from Maggie is found with the graph, we obtain the brand new demand bend
Derivation of one’s demand bend out of Rate Consumption Contour:

Since it is shown for the (a), that at the totally new budget line Abdominal and you may indifference curve IC, the quantity needed away from Maggie try dos units. The cost Usage Bend shows the many levels of Maggie bought by consumer at additional prices.

Because the revealed inside Fig (b), If the overall money spent of the user to your Maggie is actually divided by the quantity of products ate, we get the fresh new each-unit cost of Maggie. It is also told you since hill of finances line within the (a). we can even mark brand new consult schedule with this data: