Question
Asked By DreamyNights91 at
Answered By Expert
Wade
Expert · 2.6k answers · 2k people helped
Step 1/2
a. The market demand curve is derived by summing the individual demand curves horizontally. This means that at a given price, we add the quantities demanded by each individual to find the total quantity demanded in the market.
Given the individual demand curves:
We sum these up to get the market demand:
`Q=Q_A+Q_C+Q_(C^0`Substituting the individual demands into this equation
`Q=(5-P)+(6-2P)+4-0.5P)`Simplifying this equation gives us the market demand curve:
`Q=15-3.5P`Explanation:
So, the market demand curve for doughnuts is `Q=15-3.5P` . This means that for each price level, the quantity demanded in the market is given by subtracting 3.5 times the price from 15.Step 2/2
b. The market demand curve for doughnuts is `Q=15-3.5P``Q+3.5P=15``Q/15+P/(15/3.5)=1` ................................ intercept form of market demand `P=0 , Q=15``P=4.2,Q=0` ........................... ( coordinates of market demand )Explanation:
The following graph shows the market demand curve for doughnuts
Final Answer
a. The market demand curve for doughnuts is `Q=15-3.5P`b. The following graph shows the market demand curve for doughnuts
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