Demand analysis - SessionIV:Demandanalysis PGPI TermI

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Session IV: Demand analysis PGP I Term I
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                   Budget line: Change in Price G1 G 2 100 50 Budget line:  100G1+50G2=5000 Budget line: 50G1+50G2=5000 100 25 Budget line:  200G1+50G2=5000
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Derivation of Demand curve q2 q1 q1 p1 d1 200 100 50 20 45 80 q1=q1(p, I) PCC
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Depicts the relationship between price and  quantity demanded at that price We achieve higher level of utility as we move  along demand curve MRS=Price ratio falls as we move along the  demand curve.  Demand curve:
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Change in demand-shift in demand schedule Change in quantity demanded-Movement along  demand curve A linear Demand curve bp a q - = Shift parameter  (e.g. Income) Slope parameter  (price)
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Income Price of related goods Tastes Expectations Demand curve shift
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                   Budget line: Change in Income G1 G2 100 50 60 120 Budget line:100G1+50G2=5000 Budget line: 100G1+50G2=6000 Budget line: 100G1+50G2=7000 140 70
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Change in income q1 q1 q2 p1 d3 d2 d1 ICC 100
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This note was uploaded on 03/01/2012 for the course STRATEGY Om121 taught by Professor Abhinavdhar during the Spring '12 term at Harvard.

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Demand analysis - SessionIV:Demandanalysis PGPI TermI

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