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In: Economics

There are three consumers in the market for widgets. Their inverse demand function, given the prices...

There are three consumers in the market for widgets. Their inverse demand function, given the prices of the rest of goods and the consumers’ income, are ?1(?) = 10−?, ?2(?) = 10−2?, ?3(?) = 10−3?, Where ? represents number of widgets. Obtain the market demand function for widgets.

Solutions

Expert Solution

The demand of all the three consumers are given as:-

P1(Q) = 10- Q   

P2(Q) = 10 - 2Q

P3(Q) = 10 -3Q

Now , the total market demand will be as:-

= 10 - Q + 10 -2Q + 10 -3Q

= 30 - 6Q Answer.

Rahul Sunny answered 2 years ago
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