Premium Essay

Pindyck - Market Demand (Chapter 4.3)

In:

Submitted By rizkiaditya29
Words 543
Pages 3
4.3 MARKET DEMAND

Market demand curve is curve relating the quantity of a good that all consumers in a market will buy to its price.

From Individual to Market Demand Table 4.2 | Determining the Market Demand Curve | (1) Price ($) | (2) Individual A (Units) | (3) Individual B (Units) | (4) Individual C (Units) | (5) Market (Units) | 1 | 6 | 10 | 16 | 32 | 2 | 4 | 8 | 13 | 25 | 3 | 2 | 6 | 10 | 18 | 4 | 0 | 4 | 7 | 11 | 5 | 0 | 2 | 4 | 6 |
5
4
3
2 Market Demand A B C
0 5 10 15 20 25 30
Summing To Obtain a Market Demand Curve
The market demand curve is obtained by summing our three consumers’ demand curves DA, DB, and DC. At each price, the quantity of coffee demanded by the market is the sum of the quantities demanded by each consumer. At a price of $4, for example, the quantity demanded by the market (11 units) is the sum of the quantity demanded by A (no units), B (4 units), and C (7 units).
Two points should be noted:
1. The market demand curve will shift to the right as more consumers enter the market.
2. Factors that influence the demands of many consumers will also affect market demand.
The aggregation of individual demands in to market becomes important in practice when market demands are built up from the demands of different demographic groups or from consumers located in different areas.
Elasticity of Demand
Denoting the quantity of a good by Q and its price by P, the price elasticity of demand is:

Inelastic Demand
When demand is inelastic, the quantity demanded is relatively unresponsive to changes in price. As a result, total expenditure on the product increases when the price increases.
Elastic Demand
When demand is elastic, total expenditure on the product decreases as the price goes up.
Isoelastic Demand
Demand curve with a constant price elasticity.

9
6
3

Similar Documents

Premium Essay

Project

...THE EFFECTS OF TOTAL QUALITY MANAGEMENT ON PRODUCTIVITY USING THE PROBIT MODEL (A CASE STUDY OF SKYE BANK PLC EDO STATE) BY SIDI VICTOR IZUAGBE ACC/2008/501 DEPARTMENT OF ACCOUNTANCY FACULTY OF MANAGEMENT AND SOCIAL SCIENCES CARITAS UNIVERSITY, AMORJI-NIKE, ENUGU, ENUGU STATE AUGUST, 2013 TITLE PAGE THE EFFECTS OF TOTAL QUALITY MANAGEMENT ON PRODUCTIVITY USING THE PROBIT MODEL (A CASE STUDY OF SKYE BANK PLC EDO STATE) BY SIDI VICTOR IZUAGBE ACC/2008/501 A RESEARCH PROJECT PRESENTED TO THE DEPARTMENT OF ACCOUTANCY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE (B.Sc) DEGREE IN ACCOUNTANCY, FACULTY OF MANAGEMENT AND SOCIAL SCIENCES, CARITAS UNIVERSITY, AMORJI-NIKE, ENUGU STATE AUGUST, 2013 APPOVAL PAGE This project on The effects of total quality management on productivity: A case study of Skye Bank Plc, written by Sidi Victor Izuagbe of Accountancy Department has been approved and assessed by the committee of Accountancy Department, Faculty of Management and Social Sciences, Caritas University Amorji-Nike. Enugu ……………………………… SUPERVISOR ……………… DATE PROF. E.O. NWADIALOR …………………………….. ………………. HEAD OF DEPARMENT DATE DR. FRANK. E. OVUTE ……………………………… EXTERNAL SUPERVISOR ……………… DATE CERTIFICATION This is to certify that the research work titled the effects of total quality management on productivity using the probit model: a case study of Skye Bank Plc was carried out by and written by SIDI VICTOR IZUAGBE with Registration number...

Words: 13965 - Pages: 56

Free Essay

Hse Improvent to Reduce Unecessary Loss

...Canadian tourism and hospitality industries and workforce characteristics, human resources management practice, technology change. The productivity analysis is conducted with different measures of productivity, such as labour productivity and total factor productivity. The first chapter is to calculate labour productivity using the Canadian National Tourism Indicator (NTI) and the Canadian Human Resource Module of Tourism Satellite Account (HRM) for six tourism industries during the period 1997-2008 and to estimate an econometric model of labour productivity. Labour productivity is found to increase with the capital labour ratio, the proportion of part-time hours, the share of immigrant workers and by the proportion of the most experienced workers. The second chapter decomposes the total factor productivity growth for the Canadian tourism/hospitality industries with dynamic factor demand models which is estimated with nonlinear Full Information Maximum Likelihood (non-linear FIML) estimator. The results show that only a few Canadian tourism/hospitality industries experienced positive total factor productivity growth and had a major gain from technological change during the period 1983-2003. The final chapter is to examine the impact of technology use (ICT), training and labour turnover on labour productivity in the Canadian...

Words: 39529 - Pages: 159

Free Essay

Besanko

...Chapter 1 The Evolution of the Modern Firm Chapter Contents 1) Introduction 2) The World in 1840 • Doing Business in 1840 • Conditions of Business in 1840: Life Without a Modern Infrastructure Example 1.1: The Emergence of Chicago 3) The World in 1910 • Doing Business in 1910 Example 1.2: Responding to the Business Environment: The Case of American Whaling • Business Conditions in 1910: A "Modern" Infrastructure Example 1.3: Evolution of the Steel Industry 4) The World Today • Doing Business Today • The Infrastructure Today Example 1.4: Economic Gyrations and Traffic Gridlock in Thailand 5) Three Different Worlds: Consistent Principles, Changing Conditions, and Adaptive Strategies Example 1.5: Infrastructure and Emerging Markets: The Russian Privatization Program Example 1.6: Building National Infrastructure: The Transcontinental Railroad 6) Chapter Summary 7) Questions Chapter Summary This chapter analyses the business environment in three different time periods: 1840, 1910 and the present. It looks at the business infrastructure, market conditions, the size and scope of a firm’s activities and a firm’s response to changes. This historical perspective shows that all successful businesses have used similar principles to adapt to widely varying business conditions in order to succeed. Businesses in the period before 1840 were small and operated in localized markets...

Words: 81132 - Pages: 325

Free Essay

Handbook

...Bachelor of Arts in Business Economics STUDENT’S HANDBOOK 2011/2012 Lazarski University Warsaw, June 2011 1 Lazarski School of Commerce and Law Student’s Handbook- Bachelor of Arts in Business Economics Content Page 4 6 8 13 15 15 15 17 17 18 19 21 23 24 26 28 30 32 34 35 37 39 41 43 44 46 48 49 50 51 53 54 55 57 58 59 60 62 63 63 64 66 67 69 72 74 75 76 77 79 80 82 The Programme The Degree Assessment Quality Assurance Admission Procedures Erasmus Study in BABE Programme Administrative Issues Course Descriptors Mathematics Introductory Microeconomics Introduction to Sociology Current Issues of the European and Global Economy Academic Writing Introduction into Business Introductory Macroeconomics Introduction into Economic Analysis Economics of Integration Information Technology Intermediate Microeconomics Issues in Macroeconomic Policy Mathematical Economics Statistics Regional Economics Introduction to Strategic Management Banking and Finance International Business Law Research Proseminar Accounting Managerial Economics International Economics Intermediate Macroeconomics Econometrics Research Methods Social Policy Game Theory Public Finance Investment Analysis BA Seminar Electives Financial Accounting Monetary Theory and Policy - The Impact of Global Crisis Principles of Marketing The World Economy – Retrospective View The Small and Medium-Sized Enterprises (SME) Sector Economics of Telecommunication Demography and Economics of Contemporary European Migration Personal...

Words: 47436 - Pages: 190

Premium Essay

Project Financing

...Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Project Financing Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, visit our Web site at www.WileyFinance.com. Project Financing Asset-Based Financial Engineering Second Edition JOHN D. FINNERTY, Ph.D. John Wiley & Sons, Inc. Copyright C 2007 by John D. Finnerty. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States...

Words: 114949 - Pages: 460

Premium Essay

Asked Frequently Questions

...copyright material in this book please see our website at www.wiley.com The rights of Pierre Vernimmen, Pascal Quiry, Antonio Salvi, Maurizio Dallocchio and Yann LeFur to be identified as the authors of this work have been asserted in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com. Designations used by companies to distinguish their products are often...

Words: 120046 - Pages: 481

Premium Essay

Merger & Acquisition

...Mergers, Acquisitions and Corporate Restructuring II MERGERS, ACQUISITIONS AND CORPORATE RESTRUCTURING Mergers, Acquisitions and Corporate Restructuring Edited by Chandrashekar Krishnamurti Vishwanath S.R. Copyright © Chandrashekar Krishnamurti and Vishwanath S.R., 2008 All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. First published in 2008 by Response Books Business Books from SAGE B1/I-1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044, India SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320, USA SAGE Publications Ltd 1 Oliver’s Yard, 55 City Road London EC1Y 1SP, United Kingdom SAGE Publications Asia-Pacific Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Published by Vivek Mehra for Response Books, typeset in 9.5/13 pt Berthold Baskerville by Star Compugraphics Private Limited, Delhi and printed at Chaman Enterprises, New Delhi. Library of Congress Cataloging-in-Publication Data Mergers, acquisitions and corporate restructuring/edited by Chandrashekar Krishnamurti, Vishwanath S.R. p. cm. Includes references and index. 1. Consolidation and merger of corporations. Corporate reorganizations. I. Vishwanath, S.R., 1971– II. Krishnamurti, Chandrashekar, 1956– HG4028.M4 .M44 658.1/6 22 2008...

Words: 62616 - Pages: 251

Premium Essay

Cost

...COST AND VALUE MANAGEMENT IN PROJECTS Ray R. Venkataraman and Jeffrey K. Pinto John Wiley & Sons, Inc. This book is printed on acid-free paper. Copyright  2008 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created...

Words: 94122 - Pages: 377

Premium Essay

Management Accounting

...Handbook of Management Accounting Research Volume 3 Edited by CHRISTOPHER S. CHAPMAN Imperial College London, UK ANTHONY G. HOPWOOD University of Oxford, UK MICHAEL D. SHIELDS Michigan State University, USA AMSTERDAM – BOSTON – HEIDELBERG – LONDON – NEW YORK – OXFORD PARIS – SAN DIEGO – SAN FRANCISCO – SINGAPORE – SYDNEY – TOKYO Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively visit the Science and Technology Books website at www.elsevierdirect.com/rights for further information Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for...

Words: 187223 - Pages: 749

Premium Essay

Case Studies in Finance - Managing for Corporate Value Creation,

...MBA Program Course: Financial Analysis and Decision Making MBA730 Instructor: Marlena L. Akhbari Wright State University Finance and Financial Services McGraw-Hill/Irwin =>? McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond...

Words: 54708 - Pages: 219

Premium Essay

Eastboro Machine Tools Corporation

...MBA Program Course: Financial Analysis and Decision Making MBA730 Instructor: Marlena L. Akhbari Wright State University Finance and Financial Services McGraw-Hill/Irwin =>? McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond...

Words: 54708 - Pages: 219