Marketdemand

Marketdemand - DerivingTheMarketDemandCurveFrom...

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    Deriving The Market Demand Curve From  Individual Demand Curves *The ppt is a joint effort: Miss Mengke WANG discussed the  problem with Dr. Ka-fu WONG on 9th October 2008;  Mengke drafted the ppt; Ka-fu revised it.  Use it at your own  risks.  Comments, if any, should be sent to  kafuwong@econ.hku.hk. 
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    What is a demand curve? The demand curve is the set of all price-quantity pairs for which  buyers are satisfied.    ("Satisfied" means being able to buy the  amount they want to at any given price.)
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    Horizontal  interpretation If buyers face a price of $4/lobster, they will wish to purchase  4000 lobsters a day. Price ($/lobster) Quantity (1000s of lobsters/day) 10 8 6 4 2 0 1 2 3 4 5 D D
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    Vertical  interpretation If buyers are currently buying 4000 lobsters a day, the demand  curve tells us that buyers would be willing to pay at most $4 for 
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This note was uploaded on 09/06/2010 for the course FBE ECON1001 taught by Professor Dr.demurger during the Fall '08 term at HKU.

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Marketdemand - DerivingTheMarketDemandCurveFrom...

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