Unformatted text preview: good at price p. – Person i has income = I i . • At any given price, the market demand, D, will be the sum of individual demands: ( ) ( ) ∑ = = N i i i n I p d I I I p D 1 2 1 , ... , , Features of Market Demand • Market demand is a function of the distribution of income in a market, rather than just mean income. • If all individual demand curves are downward sloping with respect to price, then the market demand curve will also be downward sloping. ( ) ( ) ∑ = = N i i i n I p d I I I p D 1 2 1 , ... , , Graphical Derivation p q The market demand curve is the horizontal sum of all the individual demand curves....
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This note was uploaded on 02/11/2012 for the course ECON 51 taught by Professor Tendall,m during the Fall '07 term at Stanford.
- Fall '07