Economics 1021A Chapter 8

00 633 833 933 1200 1400 2500 individual demand and

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Unformatted text preview: d 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 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 8 Lisa’s demand 6 4 3 2 0 Chuck’s 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 2 4 5 6 8 9 Quantity (movies per month) The Paradox of Value 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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This document was uploaded on 04/03/2014.

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