A demand curve is usually constructed by using utility function method. Practically, it is difficult to estimate a market demand curve for a good by means of the method. The basic assumption of the study is that a demand curve for a good is influenced by two variables; the highest price a consumer is willing to pay for the good and the highest price a consumer is able to afford for the good. Then through market surveys, one can acquire these prices the consumer is willing to pay and those he is able to afford. Therefore, a market demand curve can be constructed by applying these data.
關聯:
The Indian Journal of Ecobomics vol. 82, no. 327 pp.495-508
