New answers tagged demand
4
Let $K:=y-(f+fa)-(t+ta)x$, and so $c=K-pq$.
From condition $(\mathrm{A1})$,
\begin{align}
&&\frac{v_q(\cdot)}{v_c(\cdot)}&=p \\
\quad\Rightarrow\quad &&
\frac{\alpha[K-pq]^{1-\alpha}q^{\alpha-1}}{(1-\alpha)[K-pq]^{-\alpha}q^\alpha}&=p \\
\quad\Rightarrow\quad &&
pq&=\alpha K \\
\quad\Rightarrow\quad &&
q&=\frac{...
2
I am not sure what the chart intends to show. In any case, the series in question is how many BTC you need to pay for one ounce of gold. The scale is logarithmic by the way.
If you overlay the inverse dollar price, you will see that the movement is largely identical to the BTC-Oz chart. Gold price changes are miniscule compared to BTC, so almost all ...
4
It's BTC per Oz gold which shows how many btc you need to pay for 1oz. To compute this, you need to know the price (and both are quoted in USD). It still tells you a lot about the purchasing power. A lot less compared to the USD price though, because I doubt many people use Oz of gold as their unit of account.
However, everyone kind of knows gold is worth a ...
2
Becker, G. S. (1991). A note on restaurant pricing and other examples of social influences on price. JPE.
4
Upward sloping demand curves are rare but they can exist for a class of a good that is called Giffen good.
Upward sloping demand can exist because price of a good or service has two effects:
Substitution Effect: Higher price of a good means that people will rather buy something else.
Income Effect: Higher price means peoples budget constraint is tighter.
...
Top 50 recent answers are included