9 - This Week Voluntary Exchange Markets Market Efficiency The Two Pillars of Self-Interest and Competition Stralyas Demand for Water Price in

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This Week: Voluntary Exchange, Markets, Market Efficiency: The Two Pillars of Self-Interest and Competition
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Stralya’s Demand for Water 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 0.00 25.00 50.00 75.00 100.00 125.00 150.00 kL per Household per Quarter Price $AU/kL Price in Dollars per kilo liter (kL) P Quantity Demanded (quarterly water consumption in kilo liters (kL) q d = 112.50 – 50 P 2.25 0 1.50 37.50 1.00 62.50 0.50 87.50 0.00 112.50
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Calculating “Market” Demand for Two Identical Consumers Demand for Consumer 1 q d1 = 112.50 – 50 P + Demand for Consumer 2 q d2 = 112.50 – 50 P “Market Demand” for Consumers 1 and 2 q dM = q d1 + q d2 = 225 – 100 P Price (P) in Dollars per kilo liter (kL) Cons. 1: Quantity Demanded (quarterly water consumption (kL)) q d1 = 112.50 – 50 P Cons. 2: Quantity Demanded (quarterly water consumption (kL)) q d2 = 112.50 – 50 P “Market” Quantity Demanded (quarterly water consumption (kL)) q dM = 225 – 100 P 2.25 0 0 1.50 37.50 37.50 1.00 62.50 62.50 0.50 87.50 87.50 0.00 112.50 112.50
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Stralya’s Demand for Water “Market” Demand Two Consumers 0.00 0.50 1.00 1.50 2.00 2.50 0.00 25.00 50.00 75.00 100.00 125.00 150.00 175.00 200.00 225.00 250.00 kL per Household per Quarter $AU per kL Individual demand "Market" Demand
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Stralya’s Demand for Water “Market” Demand 1 Million Consumers 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 0 25 50 75 100 125 150 175 200 225 250 Million kL per Quarter (Q) $AU per kL (P) Supply Demand
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This note was uploaded on 12/16/2009 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell University (Engineering School).

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9 - This Week Voluntary Exchange Markets Market Efficiency The Two Pillars of Self-Interest and Competition Stralyas Demand for Water Price in

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