Ch04 - MICROECONOMICS Theory Applications Chapter 4 Demand Individual and Market Hamid E Ali Learning Objectives Understand how price changes

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
MICROECONOMICS: Theory & Applications Hamid E Ali Chapter 4: Demand: Individual and Market
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Learning Objectives Understand how price changes affect consumption choices. Differentiate between the income and substitution effects associated with a price change on the consumption of a particular good. Explain the relation between income and substitution effects in the case of inferior goods. Show how individual demand curves are aggregated to obtain the market demand curve. (continued)
Background image of page 2
3 Learning Objectives (continued) Demonstrate how consumer surplus represents the net benefit , or gain, served by an individual from consuming one market basket instead of another. Investigate the relationship between own-price elasticity of demand and the price-consumption curve. Examine network effects: the extent to which an individual consumer’s demand for a good is influenced by other individuals’ purchases. Overview the basics of demand estimation.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Price Changes and Consumption Choices Price-consumption curve: a curve that identifies the optimal market basket associated with each possible price of a good, holding constant all other determinants of demand. The consumer’s demand
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/07/2011 for the course MPPA 503 taught by Professor Selim,tarek during the Spring '11 term at American University in Cairo.

Page1 / 23

Ch04 - MICROECONOMICS Theory Applications Chapter 4 Demand Individual and Market Hamid E Ali Learning Objectives Understand how price changes

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online