CHAPTER 4INDIVIDUAL AND MARKET DEMANDTEACHING NOTESChapter 4 relies on two important ideas from Chapter 3: the influence of price and income changes on the budget line, and how to determine the optimal consumer choice. The chapter focuses on deriving individual demand graphically by changing either price or income, determining the income and substitution effects of a price change, deriving market demand, demand elasticity, and consumer surplus. These concepts are crucial to understandin
