In: Economics
1. Suppose we have two consumers in the market. Joe has the following demand curve: P=10-Q1. Lucy has the following demand curve: P=10-3Q2. Find (algebraically) the formula for the market (or aggregate) demand curve. Draw all 3 curves on 3 separate graphs that should be drawn next to each other (so I can see the horizontal summation of quantities).
Please give rating it will e appreciable, thank you
Consumer 1 Demand
P=10-Q1
Q1 = 10 - P
Consumer 2 Demand
P= 10- 3Q2
3Q2 = 10 - P
Q2 = 10/3 - P/3
Market Demand = Q1 + Q2
Q1 + Q2 = 10 - P + 10/3 - P/3
Q1 + Q2 = 10 + 3.3333 - P - 0.3333P
Q1 + Q2 = 13.3333 - 1.3333P
P = (13.3333 - Q1 - Q2)/ 1.3333
P = 10 - 0.75Q1 - 0.75Q2
Price | Consumer 1 | Consumer 2 | Market |
0 | 10 | 3.3333333 | 13.33333 |
1 | 9 | 3 | 12 |
2 | 8 | 2.6666667 | 10.66667 |
3 | 7 | 2.3333333 | 9.333333 |
4 | 6 | 2 | 8 |
5 | 5 | 1.6666667 | 6.666667 |
6 | 4 | 1.3333333 | 5.333333 |
7 | 3 | 1 | 4 |
8 | 2 | 0.6666667 | 2.666667 |
9 | 1 | 0.3333333 | 1.333333 |
10 | 0 | 0 | 0 |