Price Consumption Curve

The Price Consumption Curve (PCC) illustrates how a consumer's purchasing choices change when the price of a good varies, holding other factors constant. It shows the different combinations of two goods that a consumer would buy at different prices for one of the goods. As the price of one good decreases, for instance, the consumer tends to buy more of that good and possibly less of another, reflecting their preferences. The curve helps visualize the relationship between price changes and consumption patterns, offering insights into demand behavior and consumer choice.