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Alvin’s demand for a product is QdA=10-P and Betty’s demand is QdB=5-P.
a. Calculate Alvin and Betty’s marginal and total willingness to pay for 4 units of consumption of this product. Explain it graphically.
b. Derive the aggregate demand function. What is the aggregate willingness to pay when the market of these two consumes 4 units?
c. When the market consumes 4 units, what are the amounts consumed by Alvin, by Betty?
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