From individual to market demand Functions e When all consumers are price-takers, the market demand function for commodity j is X」(P1,P2m,…,m2)=∑x(Pp1P2,mh) cIf all consumers are identical then Xj(p1, p2, M)=nxXj(p1, p2, m) where me nmFrom Individual to Market Demand Functions ◆When all consumers are price-takers, the market demand function for commodity j is ◆If all consumers are identical then where M = nm. Xj p p m m n xj i p p m i i n ( , , , , ) ( , , ). * 1 2 1 1 2 1  = =  Xj (p ,p ,M) n xj (p ,p ,m) * 1 2 =  1 2