We talked more about moving from an Individual Market to a Market Demand. When we look at Market Demand we want to know how EVERYONE would behave if the price of the burrito is $3. (e.g. How many would you buy? You would then add up across horizontally the graphs of the individual market to make market demand curve)
Two important things to notice while looking at demand curves were the shape of market demand curve versus the individual demand curve and is it possible to aggregate further? We learned that the more aggregated we get the flatter the demand curve is going to be. And when you aggregate beyond a single good it becomes hard to define "Q".
We also talked about comparative statics and specifically what changes our consumption:
-Own price
-Everything else, which has 5 categories (Income, substitutes, expectations, tastes, and the number of individuals in the market).
There are also two types of goods:
-"Normal"where when income increases Q also increases, so the demand curve will shift right.
-"Inferior" where when income increases Q also decreases, so the demand curve will shift left.
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