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LG4 - individual linear demand curves for a private good 3...

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University of Wisconsin Department of Economics Economics 301: Intermediate Microeconomic Theory Korinna K. Hansen Learning Guide 4 Due Date: Monday, March 3, 2008 Reading Assignment: Varian Chapter 15 up to the middle of page 276. Problem Assignment: Problems 1 and 2 on page 282. Objectives: After completing the assignment you should be able to do the following: 1. Be able to derive the market demand curve given the prices for all goods and the income for all consumers in an economy. 2. Be able to derive the market demand curve graphically and mathematically given all
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Unformatted text preview: individual linear demand curves for a private good. 3. Give a definition of the price elasticity of demand, the mathematical formula for it and its interpretational value. 4. Be able to explain (with the help of a formula and a graph) the exact relationship between the slope and the price elasticity of demand for a linear demand curve. 5. Be able to define elastic, inelastic and unit elastic demand. 6. Be able to describe the relationship between price elasticity of demand and total revenue....
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