Answer to Question #298025 in Microeconomics for Hathil

Question

Using appropriate graph show how the demand curve is derived from utility maximization

Answer 1

 X is a normal good: as the price of X is reduced from OP₁ to OP₂ to OP₃, the quantity of X demanded expands from OQ₁ to OQ₂ to OQ₃. The resulting demand curve is downward-sloping from left to right.