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In: Economics

A firm sells its product to two groups of customers. Demand from group 1 is Q1...

A firm sells its product to two groups of customers. Demand from group 1 is Q1 = 100, 000− 5,000P and demand from group 2 is Q2 = 140,000 − 10,000P.

a) Find the total demand that the firm faces for its product. Explain it first using pictures, and then do the algebra. Write your answer of the total demand as quantity as a function of price. (Hint: draw pictures. Then add the two demands horizontally; that is, at each price add the quantities demanded in both locations at that price)

b) Express your answer as price as a function of quantity.

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Expert Solution

Rahul Sunny answered 1 year ago
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