ECON101 Lecture Notes - Lecture 12: Club Good, Bottled Water, Demand Curve

• School: University of Alberta
• Department: Economics
• Course: ECON101
• Professor: Gordon Lee

Document Summary

Private goods (goods that are exclusive and rival) must be one where your consumption impacts signi cantly (or impacts somebody else"s consumption) and prevents somebody from using it. ** /p 2 => mu 2 decreases and by buying less of good 1, mu 1. ** : second point on the demand curve for good 1. ) To derive the individual"s demand curve, keep changing the price of good 1, find the new equilibrium which gives the quantity of good 1 => point on the demand curve. Every point on the demand curve is optimum. Moe: italian food > chinese food > mexican food. Larry: chinese food > mexican food > italian food. Curly: mexican food > italian food > chinese food. Italian food vs. chinese food => 2 > 1. Chinese food vs. mexican food => 2 > 1. Conservations (c), moderate socialists (s), radical socialists (r). Deriving the market demand from individual demand curves is easy for private.