中级微观经济讲义10.pdf

Chapter 10 THE PARTIAL EQUILIBRIUM COMPETITIVE MODEL By WALTER NICHOLSON Slides prepared by Linda Ghent (Eastern Illinois University) Modified by Huihua NIE (Renmin Unversity of China) 1 4 Levels of Economic Analysis • Consumers maximize utility/Producers maximize profitstatic optimization • Comparative analysis • Demand equals supplypartial equilibrium analysis • General equilibrium analysis 2 Market Demand • Assume that there are only two goods (x and y) – An individual’s demand for x is Quantity of x demanded = x(p ,p ,I) x y – If we use i to reflect each individual in the market, then the market demand curve is n Market demand for ( , , ) X x p p  I i x y i i 1 3 Market Demand Under p , X*=x +x