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Unformatted text preview: Slope = 2 yintercept is (0, 12) Interpreting slopeintercept form of demand P= 2 Q d + 12 Given a unit of output, what is the highest price someone would pay? Willingness to pay = marginal benefit (MB) Demand as MB Q d (boxes per month) P ($) 6 5 2 4 4 3 6 2 8 1 10 12 MB of 3 rd box = $6 MB of 2 nd box = $8 MB of 5 th box = $2 Declining marginal benefit As quantity increases, marginal benefit falls...
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This note was uploaded on 09/21/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue UniversityWest Lafayette.
 Spring '08
 Blanchard
 Microeconomics

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