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Suppose there are two consumers in the market for a good and their demand functions are as follows : ** d_(1)(p)=20-p for any price less than or equal to 15, and d_(1)(p) =0 at ant price greater than 15. ** d_(2)(p) = 30-2p for any price less than or equal to 15 and d_(1)(p)=0 at any price greater than 15. Find out the market demand function. |
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Answer» Solution :It can be seen from the given demand FUNCTIONS that Consumer1 do not want to emand the goofs for any price greater than or EQUAL Rs 20 and consumer 2 do not want to demand the goods for any price greater than Rs 15. Hence, the market demand function will be, `d_("market")[P] = d_(1)[P] + d_(2)[P]` `d_("demand")[P] = 20 -P + 30 -2P` `d_("market")[P] = 50 - 3P`, for any price `lt 50 //3` and `d_("market")[P] = 0.` any for any Price `GT = 50//3`. |
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