Solved Problems
Chapter03_001
TABLE OF CONTENTS
Question 1 of 2
Step 1
Solved Problems
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You must read each slide, and complete any questions on the slide, in sequence.
Three students wish to buy cupcakes for their Economics class. The following individual demand curves are given for Javier, Jia, and Jennifer. Enter the total market demand at each price. Enter each value as a whole number.
| Quantity Demanded (Per person) | ||||
| Price | Javier | Jia | Jennifer | Market Demand |
| $2.00 | 12 | 9 | 18 | |
| $2.25 | 10 | 8 | 16 | |
| $2.50 | 8 | 6 | 15 | |
| $2.75 | 7 | 4 | 12 | |
| $3.00 | 7 | 3 | 9 | |
| $3.25 | 5 | 2 | 8 | |
Table
The market demand curve, like an individual demand curve, has a specific quantity at each price. This quantity is the sum of the individual quantities at each price.
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Step 2
This market demand curve , because the total quantity demanded as the price decreases.
As the price decreases from $3.25 to $2.00, the total quantity demanded increases from 15 to 39. This would result in a downward-sloping market demand curve (an inverse relationship between price and quantity)
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