00 9 400 10 300 11 200 12 100 13 067 14 033 bowling 3

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Unformatted text preview: 7 7 6 5 4 3 2 1 0 3.67 4.00 4.33 4.67 5.00 5.33 5.67 6.00 6.00 6.33 8.33 9.33 12.00 14.00 25.00 Individual Demand and Market Demand Market Market demand is the relationship between the total quantity demanded of a good and its price. Individual demand is the relationship between quantity demanded of a good by a single individual and its price. Individual and Market Demand Curves Demand Price (dollars per movie) Quantity of movies demanded Chuck Lisa Market 7 1 + 0 = 1 6 2 + 0 = 2 5 3 + 0 = 3 4 4 + 1 = 5 3 5 + 2 = 7 2 6 + 3 = 9 Price (dollars per movie) Price (dollars per movie) Individual and Market Demand Curves Demand 8 Lisa’s demand 6 4 3 2 0 Chuck’s demand demand 2 movies 5 movies 2 4 5 6 8 8 Market Demand 6 4 3 2 0 Quantity (movies per month) 5 + 2 = 7 movies movies 2 4 5 6 89 Quantity (movies per month) The Paradox of Value The Diamonds have a high price and a high marginal utility, while water has a low price and a low marginal utility. At consumer equilibrium, the marginal utility per dollar spent is the same for diamonds as for water....
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