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# 经济代写|微观经济学代考Microeconomics代写|Individual and Market Demand Curves

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## 经济代写|微观经济学代考Microeconomics代写|Individual and Market Demand Curves

Normally, economists talk about market demand curves rather than individual demand curves. A market demand curve is the horizontal sum of all individual demand curves. Firms don’t care whether individual A or individual B buys their goods; they only care that someone buys their goods.

Adding individual demand curves together to create a market demand curve is a good graphical exercise. I do that in Figure 4-4. In it I assume that the market consists of three buyers, Alice, Bruce, and Carmen, whose demand tables are given in Figure 4-4(a). Alice and Bruce have demand tables similar to the demand tables discussed previously. At a price of $\$ 6$each, Alice rents four movies; at a price of$\$4$, she rents six. Carmen is an all-or-nothing individual. She rents one movie as long as the price is equal to or less than $\$ 2$; otherwise she rents nothing. If you plot Carmen’s demand curve, it’s a vertical line. However, the law of demand still holds: As price increases, quantity demanded decreases. The quantity demanded by each consumer is listed in columns 2,3 , and 4 of Figure 4-4(a). Column 5 shows total market demand; each entry is the horizontal sum of the entries in columns 2,3 , and 4 . For example, at a price of$\$6$ apiece (row $F$ ), Alice demands four movie rentals, Bruce demands one, and Carmen demands zero, for a total market demand of five movie rentals.

Figure 4-4(b) shows three demand curves: one each for Alice, Bruce, and Carmen. The market, or total, demand curve is the horizontal sum of the individual demand curves. To see that this is the case, notice that if we take the quantity demanded at $\$ 2$by Alice (8), Bruce (5), and Carmen (1), they sum to 14 , which is point$B(14, \$2)$ on the market demand curve. We can do that for each price. Alternatively, we can simply add the individual quantities demanded, given in the demand tables, prior to graphing (which we do in column 5 of Figure 4-4(a)), and graph that total in relation to price. Not surprisingly, we get the same total market demand curve.

In practice, of course, firms don’t measure individual demand curves, so they don’t sum them up in this fashion. Instead, they statistically estimate market demand. Still, summing up individual demand curves is a useful exercise because it shows you how the market demand curve is the sum (the horizontal sum, graphically speaking) of the individual demand curves, and it gives you a good sense of where market demand curves come from. It also shows you that, even if individuals don’t respond to small changes in price, the market demand curve can still be smooth and downward sloping. That’s because, for the market, the law of demand is based on two phenomena:

1. At lower prices, existing demanders buy more.
2. At lower prices, new demanders (some all-or-nothing demanders like Carmen) enter the market.

## 经济代写|微观经济学代考Microeconomics代写|The Supply Curve

A supply curve is the graphical representation of the relationship between price and quantity supplied. A supply curve is shown in Figure 4-5.

Notice how the supply curve slopes upward to the right. That upward slope captures the law of supply. It tells us that the quantity supplied varies directly-in the same direction-with the price.

As with the law of demand, the law of supply assumes other things are held constant. If the price of soybeans rises and quantity supplied falls, you’ll look for something else that changed-for example, a drought might have caused a drop in supply. Your explanation would go as follows: Had there been no drought, the quantity supplied would have increased in response to the rise in price, but because there was a drought, the supply decreased, which caused prices to rise.

As with the law of demand, the law of supply represents economists’ off-the-cuff response to the question “What happens to quantity supplied if price rises?” If the law seems to be violated, economists search for some other variable that has changed. As was the case with demand, these other variables that might change are called shift factors.
Shifts in Supply versus Movements along a Supply Curve The same distinctions in terms made for demand apply to supply.
Supply refers to a schedule of quantities a seller is willing to sell per unit of time at various prices, other things constant.
Quantity supplied refers to a specific amount that will be supplied at a specific price.

# 微观经济学代写

## 经济代写|微观经济学代考Microeconomics代写|The Supply Curve

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## MATLAB代写

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