Advertisement

Price Theory pp 123-153 | Cite as

The Determination of Relative Product Prices

  • W. J. L. Ryan
  • D. W. Pearce
Chapter
  • 12 Downloads

Abstract

In Chapter 2, we described the derivation of a consumer’s demand for any good that he might plan to buy. A consumer’s demand for a particular good is shown as a demand schedule which tells us how his purchase plan would be revised if the only planning datum that altered was the price he expected to have to pay for the good — that is, a schedule that shows the quantity that the consumer would plan to buy in a given period of time at each price at which the good might be sold, ceteris paribus. The other things that must remain equal are the consumer’s tastes and preferences (i.e. his indifference map), his income, the prices of all other goods that he might buy, and the basic aim of utility maximisation. The total or market demand for the good is obtained by adding together the demands of all the consumers in the economy who might plan to buy it.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© W. J. L. Ryan and D. W. Pearce 1977

Authors and Affiliations

  • W. J. L. Ryan
    • 1
  • D. W. Pearce
    • 2
  1. 1.University of DublinEireIreland
  2. 2.University of AberdeenUK

Personalised recommendations