2.2.2 Market Demand versus Individual Demand The market demand at each price is the sum of all the individual demands The quantity demanded in a market is the sum of the quantities demanded by all the buyers at each price. Thus, the market demand curve is found by adding horizontally the individual demand curves At a price of $2, Catherine demands 4 ice-cream cones, and Nicholas demands 3 ice-cream cones. The quantity demanded in the market at this price is7 cones. Price of ice-Cream Cone Catherine Nichol Market $0.00 12 0.50 16 1.00 13 1.50 6 2.00 765432 2.50 3.00 0
2.2.2 Market Demand versus Individual Demand ◼ The market demand at each price is the sum of all the individual demands. 12 + = 10 8 6 4 2 0 Catherine 7 6 5 4 3 2 1 Nicholas 19 16 13 10 7 4 1 $0.00 0.50 1.00 1.50 2.00 2.50 3.00 Price of Ice-Cream Cone Market The quantity demanded in a market is the sum of the quantities demanded by all the buyers at each price. Thus, the market demand curve is found by adding horizontally the individual demand curves. At a price of $2, Catherine demands 4 ice-cream cones, and Nicholas demands 3 ice-cream cones. The quantity demanded in the market at this price is 7 cones
Catherine's Demand FIGURE 2 Price of Ice-cre Corteo Market demand 2.50 Price of Ice$. 50m Cone 1.00 3.00 0.50 2.50 0.00 Quantity of Ice-cream Cones $2.00 Nicholas's Demand 1.50 Price of Ice-cre.p $1.00 33间 2.50 Quantity of Ice-cream Cones 0.50 0.00 Quantity of Ice-cream Cones
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 0 2 4 6 8 1 0 1 2 Quantity of Ice-cream Cones Price of Ice-cream Cone Catherine’s Demand $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 1 2 3 4 5 6 7 Quantity of Ice-cream Cones Price of Ice-cream Cone Nicholas’s Demand $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 1 4 7 1 0 1 3 1 6 1 9 Quantity of Ice-cream Cones Price of Ice-cream Cone FIGURE 2 Market Demand
2.2.3 Shifts in the Demand Curve Any change that raises le quantity that buyers Price of wish to purchase at a Ice-Creaml Cone given price shifts the demand curve to the demand Any change that lowers D2 the quantity that buyers Wish to purchase at a Decrease in given price shifts the demand D1 demand curve to the left D3 Quantity of Ice-cream Cones FIGURE 3
FIGURE 3 Price of Ice-Cream Cone Quantity of Ice-cream Cones Increase in demand Decrease in demand D1 D2 D3 Any change that raises the quantity that buyers wish to purchase at a given price shifts the demand curve to the right. Any change that lowers the quantity that buyers wish to purchase at a given price shifts the demand curve to the left. 2.2.3 Shifts in the Demand Curve
Variables that Influence Buyers Income 2. Prices of related goods 3. Tastes or Preference 4. Expectations 5. Numbers of Buyers
Variables that Influence Buyers 1. Income 2. Prices of Related Goods 3. Tastes or Preference 4. Expectations 5. Numbers of Buyers
1 Income normal good a good for which, other things equal, an increase in income leads to an increase demand u inferior good a good for which, other things equal, an increase in income leads to a decrease in demand t
1. Income ◼ normal good ◼ a good for which, other things equal, an increase in income leads to an increase in demand ◼ inferior good ◼ a good for which, other things equal, an increase in income leads to a decrease in demand