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Unformatted text preview: typically written Q i 1 = f i ( P 1 | P 2 , P 3 , , I i , Z i , E i ). There are N consumers, each of whom has similar demands for good 1. The market demand for this good is simply the sum of all of the quantities demanded by the N consumers at each possible price: Q 1 = = N 1 i i 1 Q = = N 1 i f i ( P 1 | P 2 , P 3 , I i , Z i , E i ). For simplicity, this can be written more compactly as Q 1 = F 1 ( P 1 | P 2 , I , Z , E , N ). Written in this form, the function clearly shows that the market demand for a good is a relationship between the quantity demanded of a good and its price, holding constant the prices of all other goods, consumers incomes, consumers preferences, and the number of consumers. A change in any of the factors previously held constant will result in a different relationship between Q 1 and P 1 . We would call this new relationship a change demand....
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This note was uploaded on 03/29/2010 for the course EDUCATION 111 taught by Professor Jones during the Spring '10 term at Bowling Green.
- Spring '10