Time is short this week, so a truncated two lectures in one for you, based on the end of chapter 8 and all of chapter 9 of ze textbooky-wook.
Click below for the notes, kids.
Posts Tagged: Price elasticity of demand
19
Sep 08
EC4004, Ecs for Business, Lecture 4: Market Demand and Elasticity
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We construct market demand curves for products by horizontally summing quantities demanded of a good by each person in the market. So, if there are two people in the market for good 
, at a certain price, 
, individual 1 will demand 
and individual 2 will demand 
. We add up 
, and this gives us the total quantity demanded at the market at .
Market demands will be represented by capital letters from now on, and individual demands by lower case letters.
This lecture introduces the concept of elasticity.
