Chapter 4 Individual and Market Demand Chapter outline Individual Demand >Income and Substitution Effects Market Demand Consumer Surplus >Network Externality(连带外部效应)
Chapter 4 Individual and Market Demand Chapter outline ➢ Individual Demand ➢ Income and Substitution Effects ➢ Market Demand ➢ Consumer Surplus ➢ Network Externality(连带外部效应)
4.1 Individual Demand 4.1.1 Price Changes Price-consumption curve-A curve tracing (the utility- maximizing combinations of two goods as the price of one changes. 4.1.2 Individual Demand Curve Individual demand curve-Curve relating the quantity of a good that a single consumer will buy to its price
4.1 Individual Demand 4.1.1 Price Changes Price-consumption curve-A curve tracing (描绘) the utilitymaximizing combinations of two goods as the price of one changes. 4.1.2 Individual Demand Curve Individual demand curve-Curve relating the quantity of a good that a single consumer will buy to its price
Clothing (units per 6P。+2X4=4Pc+12x1 month) P=2 6 D Price-Consumption Curve 5 Food 12 20 (units per month) a $2.0 1.0 G Demand Curve 0.5 (b) Food 12 20 Effect of Price Changes (units per month)
Clothing (units per month) Food (units per month) 5 Effect of Price Changes Food (units per month) 12 20 6 4 4 12 20 (a) (b) 0.5 1.0 ＄2.0 Demand Curve Price-Consumption Curve U2 U3 U1 A B D E G H 6Pc + 2ⅹ4= 4Pc + 12ⅹ1 Pc= 2
A reduction in the price of food,with income and the price of clothing fixed,causes this consumer to choose a different market basket.In (a),the baskets that maximize utility for various prices of food (point A,$2.0;B,$1.0;D,$0.5)trace out the price-consumption curve.Part(b)gives the demand curve,which relates the price of food to the quantity demanded.(points E,G,and H correspond to points A,B and D,respectively.)
A reduction in the price of food, with income and the price of clothing fixed, causes this consumer to choose a different market basket. In (a), the baskets that maximize utility for various prices of food (point A, ＄2.0; B, ＄1.0; D, ＄0.5) trace out the price-consumption curve. Part (b) gives the demand curve, which relates the price of food to the quantity demanded. (points E, G, and H correspond to points A, B and D, respectively.)
4.1.2 Income Change Income-Consumption Curve 3 Food 16 (a) (units per month) E $1.0 Demand Curve (b 4 10 :16 Food Effect of Income Changes (units per month)
4.1.2 Income Change Clothing (units per month ) Food (units per month) 5 Effect of Income Changes Food (units per month) 10 16 7 3 4 10 16 (a) (b) ＄1.0 Demand Curve Income-Consumption Curve U2 U3 U1 4 E G H A B D D1 D2 D3 Price of Food