Question

Show that consumer of a commodity buys more of it when its price falls ? Use utility analysis.

Answer 1

yes it true when it comes to the explanation of demand that consumers will buy more at a lower price than at a higher price. e.g

kg of meat                 prices

1                                   $100

2                                  $800

3                                   $600

4                                    $400

5                                    $ 200 this tell us that they will buy more kg of meat at a lower price of $200