Suppose an individual inverse demand curve is given as P = 2 - 1/2 qi, where qi is the quantity demanded by individual i. There are 50 individual consumers with this identical, individual inverse demand curve. Solve for the market demand curve
What will be an ideal response?
Solve for the individual, regular demand curve, qi = 4 - 2P. Multiply the individual demand curve by 50 to yield QD = 200 - 100P.
You might also like to view...
An example of a seasonally unemployed worker would be
A) a day care provider who quits his job to go back to school. B) a mother who quits her job to stay home with her children. C) a General Motors employee loses her job because the company is downsizing its work force. D) a software engineer who is laid off because of declining demand for the software he writes. E) a ski lift operator who loses his job when the snow melts in the spring.
Suppose a graph is drawn to show a consumer's preferences for football tickets and basketball tickets. The quantity of football tickets is measured on the horizontal axis. If the price-consumption curve is horizontal when the price of football tickets changes, then
A) football tickets are an inferior good. B) the demand for football tickets is perfectly elastic. C) the demand for football tickets is unit elastic. D) the demand curve for football tickets will be horizontal.