Question

In: Economics

Suppose Jim has a demand curve​ of: QJd=8 − p​, and Sam has a demand curve​...

Suppose Jim has a demand curve​ of:

QJd=8 − p​,

and Sam has a demand curve​ of:

QSd=6 − 0.5p.

How much is the total demand at a price of $8.50​?   unit(s) ​(round your answer to two decimal​ places).

How much is total demand at a price of​$7.00​?   unit(s)​(round your answer to two decimal​ places).

Solutions

Expert Solution

The market demand function defines total demand in the market, and it is derived by adding up individual demand in the market.

Here, Demand function of Jim is QJd=8 − p​,

Demand function of Sam is QSd=6 − 0.5p.

Therefore, the market demand function would be:

1) At price $8.50, total demand would be:

2) At price $7.00, total demand would be:

Rahul Sunny answered 2 years ago
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