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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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- Fall '07