Reference no: EM131201322
Question : Problem consists of two different scenarios requiring you to find the market demand curve.
a. Joe, Mary, and Ellen all have the same individual demand curve for peanuts. This demand curve is P = 10 - Q. They are the only consumers of peanuts in the market.
i. Draw four graphs horizontally lined up with one another. In the first graph draw Joe’s demand curve, in the second graph draw Mary’s demand curve, in the third graph draw Ellen’s demand curve, and in the fourth graph draw the market demand curve. Be sure to identify any intercept values as well as any “kink” values in the four graphs.
ii. From the graphs in (i) write an equation in slope intercept form for the market demand curve.
iii. Show algebraically how you could find the market demand curve.
b. Paul, Chris and Jon have different demand curves for popcorn. Paul’s demand curve is P = 10 – Q; Chris’ demand curve is P = 8 – Q; and Jon’s demand curve is P = 6 – Q. They are the only consumers of popcorn in the market.
i. Draw four graphs horizontally lined up with one another. In the first graph draw Paul’s demand curve, in the second graph draw Chris’ demand curve, in the third graph draw Jon’s demand curve, and in the fourth graph draw the market demand curve. Be sure to identify any intercept values as well as any “kink” values in the four graphs.
ii. From the graphs in (i) write an equation in slope intercept form for the market demand curve.
iii. Show algebraically how you could find the market demand curve.
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