p1 Own-Price Changes Fixed p2 and y X2 p x1(P1)x1 x1(p1”) 1(p1) x1*(p1)
x2 x x1 1 *(p1 ’) x1 *(p1 ’’) p1 x1 *(p1 ’) x1 *(p1 ’’) p1 ’ p1 ’’ x1 * Own-Price Changes Fixed p2 and y
p1 Own-Price Changes Fixed p2 and y X2 pup p x1(P1)x1 x1(p1”) x1(p1”):x1*(p1)
x2 x x1 1 *(p1 ’’’) x1 *(p1 ’) x1 *(p1 ’’) p1 x1 *(p1 ’) x1 *(p1 ’’) p1 ’ p1 ’’ p1 = p1 ’’’ x1 * Own-Price Changes Fixed p2 and y
p1 Own-Price Changes Ordinary demand curve Fixed p2 and y. p1"9 for commodity 1 X2 p x1(P”):x1(P)x x1(p1”) x1(p1”):x1*(p1)
x2 x x1 1 *(p1 ’’’) x1 *(p1 ’) x1 *(p1 ’’) p1 x1 *(p1 x ’) 1 *(p1 ’’’) x1 *(p1 ’’) p1 ’ p1 ’’ p1 ’’’ x1 * Own-Price Changes Ordinary demand curve Fixed p2 and y. for commodity 1
p1 Own-Price Changes Ordinary demand curve Fixed p2 and y. p1 3 for commodity 1 X2 p p1 price offer p curve x1(P”):x1(P)x x1(p1”) x1(p1”):x1*(p1)
x2 x x1 1 *(p1 ’’’) x1 *(p1 ’) x1 *(p1 ’’) p1 x1 *(p1 x ’) 1 *(p1 ’’’) x1 *(p1 ’’) p1 ’ p1 ’’ p1 ’’’ x1 * Own-Price Changes Ordinary demand curve for commodity 1 p1 price offer curve Fixed p2 and y
Own-Price Changes The curve containing all the utility maximizing bundles traced out as p changes, with p2 and y constant, is the p, price offer curve The plot of the x,- coordinate of the p1-price offer curve against p, is the ordinary demand curve for commodity 1
Own-Price Changes uThe curve containing all the utilitymaximizing bundles traced out as p1 changes, with p2 and y constant, is the p1 - price offer curve. uThe plot of the x1 -coordinate of the p1 - price offer curve against p1 is the ordinary demand curve for commodity 1