# Demand curve deriviation

My fundamental concern is whether in real life when applying to microeconomic theory, we derive the demand curve using utility and indifference curves approach, or we simply may get data on quantity demanded of the consumer for different prices and using linear regression derive the demand curve?

• What do you mean by in real life? – Kontorus Jun 29 '16 at 13:55

Of course, the real-world demand curve may not be linear, so a simple linear regression on observed data in the form $p = \beta_0 + \beta_1 q$ may not accurately the demand curve. Here, theory may help you decide on what nonlinear terms you should include in your model, but you would still need to do the regression analysis on real-world data to actually find the parameters.