View the step-by-step solution to:

But, why do we assume the demand curves of individuals slope down?

But, why do we assume the demand curves of individuals slope down? In the case of Market Demand, we argued that, when price falls, ceteris paribus, new buyers would enter the market, and some current buyers would increase their quantity demanded as the relative price of the good in question changed. But, new buyers cannot be an influence on an individual's demand curve; the individual in question is the buyer. How de we justify the assumption that individual demand curves have a negative slope? If they do not, then we may not be able to add them to get the market demand.

This question was asked on Mar 29, 2010.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • -

    Flashcards

    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards