清华大学中级微观经济学讲义15课件.pptVIP

/Chapter Fifteen Market Demand What Is the Purpose of This Chapter? We aggregate individual demand and form a market demand function. We study a property of the market demand function 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 From Individual to Market Demand Functions When all consumers are price-takers, the market demand function for commodity j is From Individual to Market Demand Functions An Important Concept: Elasticity Elasticity measures the “sensitivity” o