Ch15_class_09

Ch15_class_09 - Chapter Fifteen Market Demand From...

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Chapter Fifteen Market Demand
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From Individual to Market Demand Functions The market demand curve is the “horizontal sum” of the individual consumers’ demand curves. E.g. suppose there are only two consumers; i = A,B.
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From Individual to Market Demand Functions p 1 p 1 x A 1 * x B 1 * 20 15 p 1 p 1 p 1 p 1
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From Individual to Market Demand Functions p 1 p 1 x A 1 * x B 1 * x x A B 1 1 * + p 1 20 15 p 1 p 1 p 1 p 1 p 1
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From Individual to Market Demand Functions p 1 p 1 x A 1 * x B 1 * x x A B 1 1 * + p 1 20 15 p 1 p 1 p 1 p 1 p 1 p 1
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From Individual to Market Demand Functions p 1 p 1 x A 1 * x B 1 * x x A B 1 1 * + p 1 20 15 35 p 1 p 1 p 1 p 1 p 1 p 1 The “horizontal sum” of the demand curves of individuals A and B.
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Elasticity measures the “sensitivity” of one variable with respect to another. The elasticity of variable X with
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Ch15_class_09 - Chapter Fifteen Market Demand From...

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