Solved Problems
Chapter 3a
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 friends. The following individual demand schedules 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. The quantity demanded of cupcakes is the sum of the quantities of cupcakes each individual wants to buy at each price.
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Step 2
In general, the market demand curve , because the total quantity demanded as the price decreases.
In a graph created from the table in the previous step, 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 and an inverse relationship between price and quantity.
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