Chapter six Demand
Chapter Six Demand
Properties of Demand functions Comparative statics analysis(比较 静态分析) of ordinary demand functions the study of how ordinary demands x,*(p, p2y)and 2(p1,p2,y) change as prices p,, p and income y change
Properties of Demand Functions Comparative statics analysis （比较 静态分析）of ordinary demand functions -- the study of how ordinary demands x1 *(p1 ,p2 ,y) and x2 *(p1 ,p2 ,y) change as prices p1 , p2 and income y change
Structure Own-price changes Price offer curve(价格提供曲线) Ordinary demand curve Inverse demand curve(反需求函数) Income changes Income offer curve(收入提供曲线) Engel curve(恩格尔曲线 Cross-price effects
Structure Own-price changes – Price offer curve （价格提供曲线） – Ordinary demand curve – Inverse demand curve （反需求函数） Income changes – Income offer curve （收入提供曲线） – Engel curve （恩格尔曲线） Cross-price effects
Own-Price Changes How does x,*(p,p2 y) change as p. changes, holding p2 and y constant? Suppose only p, increases, from p, top” and then to p1
Own-Price Changes How does x1 *(p1 ,p2 ,y) change as p1 changes, holding p2 and y constant? Suppose only p1 increases, from p1 ’ to p1 ’’ and then to p1 ’’’
Own-Price Changes Fixed p2 and y p11+p2X2=y p1=p
x1 x2 p1 = p1 ’ Fixed p2 and y. p1x1 + p2x2 = y Own-Price Changes
Own-Price Changes Fixed p2 and y p11+p2X2=y p1=p p1=p
Own-Price Changes x1 x2 p1= p1 ’’ p1 = p1 ’ Fixed p2 and y. p1x1 + p2x2 = y
Own-Price Changes Fixed p2 and y p11+p2X2=y p1=p1 p1=+ p p1=p
Own-Price Changes x1 x2 p1= p1 ’’ p1= p1 ’’’ Fixed p2 and y. p1 = p1 ’ p1x1 + p2x2 = y
Own-Price Changes Fixed p2 and y Pup
x2 x1 p1 = p1 ’ Own-Price Changes Fixed p2 and y
Own-Price Changes Fixed p2 and y Pup x1(p1)
x2 x x1 1 *(p1 ’) Own-Price Changes p1 = p1 ’ Fixed p2 and y
p Own-Price Changes Fixed p2 and y Pup p X1 (p1) X, x1(p1)
x2 x x1 1 *(p1 ’) p1 x1 *(p1 ’) p1 ’ x1 * Own-Price Changes Fixed p2 and y. p1 = p1 ’