Introduction to demand analysis, Macroeconomics

INTRODUCTION TO DEMAND ANALYSIS:

It is generally seen that market demand curve is downward sloping. Market demand curve (or sometimes called Aggregate demand curve) is nothing but the aggregation of individual demand curves. Individual demand curve can be constructed by joining different consumer equilibrium for different prices (remember that consumer can't alter the market prices, it is given to the consumer). In neo-classical consumer theory, price is exogenous variable, so demand curve can be obtain only if we change the price exogenously and join all the equilibrium points. From next on our objective is to find out the consumer demand curve, for which we will adopt ordinal theory and in that, we will take indifference curve approach.

Posted Date: 10/26/2012 2:23:40 AM | Location : United States







Related Discussions:- Introduction to demand analysis, Assignment Help, Ask Question on Introduction to demand analysis, Get Answer, Expert's Help, Introduction to demand analysis Discussions

Write discussion on Introduction to demand analysis
Your posts are moderated
Related Questions
A design-build-operate engineering company burrowed $6 million for 3 years so that in can purchase new equipment. The interest is compounded and the total amount owed will be paid

Question 1: Consider a closed economy with no government sector in which consumption (C) is related to income (Y) by the equation: C = A + bY (a) What is the marginal pr

Consider the following: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the l

What are the pros and cons of monetization of public debt

Determine Why banks raise their interest rates A way to explain why banks raise their interest rates is as follows. With higher overnight interest rates, it is more expensive fo

For a single nonprofit provider, describe an output-maximizing model to predict supplier behavior.

Maximum profits will occur at the output level where is the greatest vertical distance between Total Revenue(TR) AND Total Cost(TC. uSE THE TOTAL REVENUE-TOTAL COST CURVES TO Illus

critically examine the keynesian theory of unemployment

Q. Explain about Labor Market  in AS-AD model? In AS-AD model, economy will always be on the response curve - the thick line in chart below.  Figure: The labor in the

Was money a better store of value in the United States in the 1950s than it was in the 1970s? Why or why not? In which period would you have been willing to hold money? Which one w