Principles of Microeconomics / Unit 17 MIC 1615 short lesson, about 20 seconds
From Utility to Market Demand
Captions available
The idea
Lowering a good's price raises its marginal utility per dollar, so the consumer buys more; the points traced out are the individual demand curve. Market demand adds the individual quantities at each price, a horizontal sum.
In practice
At four dollars, buyers wanting three, two and five make ten.
Where people slip
Add quantities at each price, never prices; the vertical sum belongs to public goods.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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