Chapter Fifteen Market demand 市场需求
Chapter Fifteen Market Demand 市场需求
Structure e From Individual to market demand Functions ◆ Elasticities Revenue and own-price elasticity of demand Marginal revenue and price elasticity
Structure ◆From Individual to Market Demand Functions ◆Elasticities ◆Revenue and own-price elasticity of demand ◆Marginal revenue and price elasticity
From individual to market demand Functions Think of an economy containing n consumers,denoted by i=1, Consumer is ordinary demand function for commodity j is 了(P1p2,m)
From Individual to Market Demand Functions ◆Think of an economy containing n consumers, denoted by i = 1, … ,n. ◆Consumer i’s ordinary demand function for commodity j is xj p p m *i i ( , , ) 1 2
From individual to market demand Functions e When all consumers are price-takers, the market demand function for commodity j is X」(P1,P2m,…,m2)=∑x(Pp1P2,mh) cIf all consumers are identical then Xj(p1, p2, M)=nxXj(p1, p2, m) where me nm
From Individual to Market Demand Functions ◆When all consumers are price-takers, the market demand function for commodity j is ◆If all consumers are identical then where M = nm. Xj p p m m n xj i p p m i i n ( , , , , ) ( , , ). * 1 2 1 1 2 1 = = Xj (p ,p ,M) n xj (p ,p ,m) * 1 2 = 1 2
From individual to market demand Functions e The market demand curve is the horizontal sum of the individual consumers'demand curves E.g. suppose there are only two consumers:iEA.B
From Individual to Market Demand Functions ◆The market demand curve is the “horizontal sum” of the individual consumers’ demand curves. ◆E.g. suppose there are only two consumers; i = A,B