X1(P1,P2,0 if p1>P2 y/p1, if p1<p and X2(p1,p2,y)= ∫0,fp1<P2 y/p2, if p1>p2
x p p y if p p y p if p p 1 1 2 1 2 1 1 2 0 * ( , , ) , / , = x p p y if p p y p if p p 2 1 2 1 2 2 1 2 0 * ( , , ) , / , . = and
p Own-Price Changes Ordinary demand curve Fixed p2 and y. p, for commodity 1 y p1 p2=p p price offer p p curve X 0≤X y p2 X1
Fixed p2 and y. Own-Price Changes x2 x1 p1 x1 * Fixed p2 and y. p1 ’ p2 = p1 ’’ p1 ’’’ x y p 1 1 * = 0 1 2 x y p * y p2 p1 price offer curve Ordinary demand curve for commodity 1
Own-Price Changes Usually we ask"Given the price for commodity 1 what is the quantity demanded of commodity 1? But we could also ask the inverse question"At what price for commodity 1 would a given quantity of commodity 1 be demanded?
Own-Price Changes Usually we ask “Given the price for commodity 1 what is the quantity demanded of commodity 1?” But we could also ask the inverse question “At what price for commodity 1 would a given quantity of commodity 1 be demanded?