Theme3_demande_A08AN

Theme3_demande_A08AN - Demand 2 Goals To go from the...

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Demand
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2 Goals To go from the behavior of individuals to that of an entire population To analyze the determining factors of an economy Being able to understand and to react appropriately to various economic circumstances p Q D
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3 Individual demand Consider a consumer: whose budget is $20 the price of good Y is constant at $2 the price of good X changes from $2 to $1 to $0.50 who chooses the bundles (X,Y) = (4,6), (12,4) et (20,5), respectively
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Effect of a change in price Good X Good Y 5 20 Show the consumer’s behavior for B = $20, p Y = $2, p X = $2, $1 and $0.50 And (X,Y) = (4,6), (12,4) and (20,5) 10 40
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Demand: Relation between quantity demanded and price, ceteris paribus (all other things equal) Good X Good Y 4 5 6 4 12 20 10 p X $2 $1 $0.5 Good X 10 20 Individual demand curve
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6 Market demand The aggregate demand of an entire population. Market quantity demanded is the sum of quantities demanded by all individuals: = i d i d q Q
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7 Market demand 1 6 10 __ 2 4 8 __ 3 2 6 __ 4 0 4 __ 5 0 2 __ Price Individual A Individual B Market ($) (q A ) (q B ) (Q=q A +q B )
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Quantity
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Theme3_demande_A08AN - Demand 2 Goals To go from the...

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