FIGURE 5 DERIVING THE DEMAND FOR WALL CLIMBING USING MARGINAL UTILITY ANALYSIS
imageWith the price of wall climbing at $20 per hour, you climb for 1.5 hours (point a in both panels). When the price increases to $30 per hour, you reduce your consumption of wall climbing to 1 hour (point b in both panels). Connecting these points in panel B yields the demand curve for wall climbing.