Demand
Consumer Theory, Demand and Income
Where does the demand curve come from? In order to explain why individuals choose different quantities at different prices, we will use a model with three components:
Supply, Demand, and Market Equilibrium
We begin our study of microeconomics by looking at a market with many buyers and sellers, i.e. a market where there is a large amount of competition. We will study such a market in more depth in Perfect Competition, as well as other market types, but starting here makes it easy to get a feel for how the subject works.