Dominick Salvatore Schaums Outline of Microeconomics, 4th edition Schaums Outline Series 2006

CHAP. 2] DEMAND, SUPPLY, AND EQUILIBRIUM: AN OVERVIEW 23
Fig. 2-7
(c)
The maximum quantity of this commodity that the individual will ever demand per unit of time is 12 units.
This occurs at a zero price. This is called the saturation point for the individual. Additional units of X
result in a storage and disposal problem for the individual. Thus the “relevant” points on a demand curve
are all in the first quadrant.
2.4 From the Individual’s Demand Schedule (Table 2.8) for commodity X, (a) draw the individual’s
demand curve. (b) In what way is this demand curve different from the one in Problem 2.3?
Table 2.8
Individual’s Demand Schedule
P x ($) 6 5 4 3 2 1
Qd x 18 20 24 30 40 60
(a)
Fig. 2-8
(b)
In this problem, the individual’s demand is given by a curve, while in Problem 2.3 it was given by a straight
line. In the real world, a demand curve can be a straight line, a smooth curve, or any other irregular (but
usually negatively sloped) curve. For simplicity, in Problem 2.3 (and in the text) we dealt with a straightline
demand curve.