18 May 2022 7:59 am
Actually, you can have utility, i.e. personal satisfaction, if you die to save your son's life. In this case, it would be a simple set of supply and demand curves where the equilibrium is the price of your life for your son's. Or, if you believe your life is more valuable than your son's I believe this could also be graphed with a vertical supply curve and a vertical demand curve. But, that's probably not accurate either, more likely it would simply be two independent points in the ++ quadrant of the graph.impartialobserver » 17 May 2022, 4:11 pm » wrote: ↑ Horizontal demand curve is where demand decreases the instant that you increase the price. The person in this case is not willing to spend any amount of money to acquire the good. Examples of this are jewelry, high end alcohol, and high end cars.
Your example is a bit flawed. A demand curve is formulated on the assumption of personal satisfaction aka utility. I can't have any utility if I die. In short, no way to graph something on the standard supply demand graph that has negative marginal utility.