1. How would you go about deriving a demand curve for this commodity using neo-classical economics? Make sure you outline all the steps in the process - all the way from preferences to the actual demand curve. Also, do derive an individual demand curve and then a market demand curve.
2. Would your approach change if you were using institutional economics? If so how? If not, why not?
3. What shape does the demand curve for your commodity have? (Is it upward sloping? downward sloping? Or... what ?) Explain why you think a market demand curve for this commodity would have this shape.
1. NB: You don't need to use real data on prices and quantities or to engage in calculations such as utility maximization, but you should try to be a little realistic (to the extent this theory allows it) when you discuss the shape of the demand curve.