Price Consumption Curve (pcc).
PCC may be defined as the locus of different equilibrium points showing optimal consumption when the slope of the budget line changes due to change in price of a good. The difference between a price consumption curve PCC and a demand curve is that the PCC shows the quantities of two goods that a consumer will purchase as the price of one of the goods changes while a demand curve shows the quantity of one good that a consumer will purchase as the price of that good changes. Price-consumption curve connects points of equal utility on budget lines formed by changing prices.
The price consumption curve is a locus of equilibrium points relating the quantity of X purchased in relation to its price money income and all other prices remaining constant When the price of commodity changes it affects the consumer by making him worse or better than before depending upon the rise or fall in price.
This curve shows how the consumption of Parle-G biscuits varies with its price varies. As a result the budget line becomes flatter. From the price consumption curve henceforth PCC we can derive the consumers demand curve for a good like x 1. Price-consumption curve connects points of equal utility on budget lines formed by changing prices.
