Derive Demand Curve From Indifference Curve
demand_curve.png

BC: budget constraint line
You have endowment Y0.
You can exchange all your Y0 into X3 of product X, when X's price is Px1.
You can exchange all your Y0 into X4 of product X, when X's price is Px2.

As Px decreases, X increases, so we get demand curve of X. This demand curve is also called Marshallian demand curve.

Note

Y can be money.

See also

Compensated demand curve
Indifference curve relative concepts
Similarity-of-demand-curve-and-labor-supply-curve

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