Question
Asked By MysticMoon98 at
Answered By Expert
Neil
Expert · 3.7k answers · 3k people helped
Step 1/3
(a) We know that,
`Market \ dem a n d \ curve = Sum \ of \ i n d ividual \ dem a nd` `Q_d = Q_a + Q_b + Q_c ` `Q_d = 5 - P + 6 - 2P + 4 - 0.5P ``Q_d = 15 - 3.5 P `Explanation:
Accordingly, From the given data we obtain that,
Explanation:
Explanation:
Hence demand curve is,
Explanation:
Explanation:
`Q_d = 15 - 3.5 P `Step 2/3
(b) As obtained above, the Market demand curve for doughnuts is as follows:
`Q = 15 - 3.5P` Now, For plotting graph: `Q + 3.5P = 15` `\Rightarrow \frac{Q}{15} + \frac{P}{\frac{15}{3.5}} = 1``\Rightarrow \frac{Q}{15} + \frac{P}{4.28} = 1` `\Rightarrow ` Intercepts form of market demand.Explanation:
Using:
Explanation:
Explanation:
`\Rightarrow \frac{Q}{15} + \frac{P}{4.28} = 1 `Explanation:
Explanation:
Thus, the Intercepts of the axis are:
Explanation:
Explanation:
P = (0, 4.8), Q = (0, 15)
Step 3/3
The graphical representation is as follows:
In which:
AB = Market demand for doughnuts.
Explanation:
As obtained above
Explanation:
Explanation:
The Intercepts of the Axis:
Explanation:
Explanation:
P = (0, 4.8), Q = (0, 15)
Final Answer
(a)
`Q_d = 15 - 3.5 P `(b) P = (0, 4.8), Q = (0, 15)
The graph is illustrated above
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