The market for lemon has 10 potential consumers, each having an individual demand curve P = 101 - 10Qi, where P is price in dollars per cup and Qi is the number of cups demanded per week by the ith consumer. Find the market demand curve using algebra. Draw an individual demand curve and the market demand curve. What is the quantity demanded by each consumer and in the market as a whole when lemon is priced at P = $1/cup
Sep 02, 2023To find the market demand curve, we need to add up the individual demand curves of each consumer. Market demand curve: P = 101 - 10(Q1 + Q2 + Q3 + Q4 + Q5 + Q6 + Q7 + Q8 + Q9 + Q10) P = 101 - 10Q Where Q is the total quantity demanded by all consumers. To draw an individual demand curve, we can use the equation for one consumer: P = 101 - 10Qi When P = $1/cup, we can plug this into the market demand curve to find the quantity demanded: $1/cup = 101 - 10Q 10Q = 100 Q = 10 So each consumer would demand 1 cup at $1/cup, and the market as a whole would demand 10 cups at $1/cup.
Sep 03, 2023