In the figure to the right, what are the effects of a price decrease from $6 per wireless earbud to $3 per wireless earbud on the quantities of wireless earbuds demanded by Buyer 1 and by Buyer 2 individually and combined? 1.) Using the line drawing tool, draw the market demand curve for the two buyers. Label this line 'D.' 2.) Using the point drawing tool, indicate on Buyer 1's demand curve, D₁, the quantity demanded when the price is $6 per wireless earbud. Label this point 'A₁.' 3.) Using the point drawing tool, indicate on Buyer 2's demand curve, D2, the quantity demanded when the price is $6 per wireless earbud. Label this point 'A2' 4.) Using the point drawing tool, indicate on the market demand curve for the two buyers, D, the quantity demanded when the price is $6 per wireless earbud. Label this point 'A.' Carefully follow the instructions above, and only draw the required objects. 1.) Using the point drawing tool, indicate on Buyer 1's demand curve, D₁, the quantity demanded when the price is $3 per wireless earbud. Label this point 'B₁ .' 2.) Using the point drawing tool, indicate on Buyer 2's demand curve, D2, the quantity demanded when the price is $3 per wireless earbud. Label this point 'B₂.' 3.) Using the point drawing tool, indicate on the market demand curve for the two buyers, D, the quantity demanded when the price is $3 per wireless earbud. Label this point 'B.' Carefully follow the instructions above, and only draw the required objects. Price per Wireless Earbud ($) 7- 6- D1 D2 4 8 12 16 20 24 28 32 36 40 Wireless Earbuds per Year

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question

what are the effects of a price decrease from ​$6 per wireless earbud to ​$3 per wireless earbud on the quantities of wireless earbuds demanded by Buyer 1 and by Buyer 2 individually and​ combined?

1.) Using the line drawing​ tool, draw the market demand curve for the two buyers. Label this line
​'Upper DD​.'
 
​2.) Using the point drawing
tool​,
indicate on Buyer​ 1's demand​ curve,
Upper D 1D1​,
the quantity demanded when the price is
​$66
per wireless earbud. Label this point
​'Upper A 1A1​.'
 
​3.) Using the point drawing
tool​,
indicate on Buyer​ 2's demand​ curve,
Upper D 2D2​,
the quantity demanded when the price is
​$66
per wireless earbud. Label this point
​'Upper A 2A2​.'
 
​4.) Using the point drawing
tool​,
indicate on the market demand curve for the two​ buyers,
Upper DD​,
the quantity demanded when the price is
​$66
per wireless earbud. Label this point
​'Upper AA​.'
In the figure to the right, what are the effects of a price decrease from $6 per wireless earbud to $3 per
wireless earbud on the quantities of wireless earbuds demanded by Buyer 1 and by Buyer 2 individually
and combined?
1.) Using the line drawing tool, draw the market demand curve for the two buyers. Label this line 'D.'
2.) Using the point drawing tool, indicate on Buyer 1's demand curve, D₁, the quantity demanded when
the price is $6 per wireless earbud. Label this point 'A₁.'
3.) Using the point drawing tool, indicate on Buyer 2's demand curve, D2, the quantity demanded when
the price is $6 per wireless earbud. Label this point 'A2'
4.) Using the point drawing tool, indicate on the market demand curve for the two buyers, D, the quantity
demanded when the price is $6 per wireless earbud. Label this point 'A.'
Carefully follow the instructions above, and only draw the required objects.
1.) Using the point drawing tool, indicate on Buyer 1's demand curve, D₁, the quantity demanded when
the price is $3 per wireless earbud. Label this point 'B₁ .'
2.) Using the point drawing tool, indicate on Buyer 2's demand curve, D2, the quantity demanded when
the price is $3 per wireless earbud. Label this point 'B₂.'
3.) Using the point drawing tool, indicate on the market demand curve for the two buyers, D, the quantity
demanded when the price is $3 per wireless earbud. Label this point 'B.'
Carefully follow the instructions above, and only draw the required objects.
Price per Wireless Earbud ($)
7-
6-
D1
D2
4
8
12 16 20 24 28 32
36
40
Wireless Earbuds per Year
Transcribed Image Text:In the figure to the right, what are the effects of a price decrease from $6 per wireless earbud to $3 per wireless earbud on the quantities of wireless earbuds demanded by Buyer 1 and by Buyer 2 individually and combined? 1.) Using the line drawing tool, draw the market demand curve for the two buyers. Label this line 'D.' 2.) Using the point drawing tool, indicate on Buyer 1's demand curve, D₁, the quantity demanded when the price is $6 per wireless earbud. Label this point 'A₁.' 3.) Using the point drawing tool, indicate on Buyer 2's demand curve, D2, the quantity demanded when the price is $6 per wireless earbud. Label this point 'A2' 4.) Using the point drawing tool, indicate on the market demand curve for the two buyers, D, the quantity demanded when the price is $6 per wireless earbud. Label this point 'A.' Carefully follow the instructions above, and only draw the required objects. 1.) Using the point drawing tool, indicate on Buyer 1's demand curve, D₁, the quantity demanded when the price is $3 per wireless earbud. Label this point 'B₁ .' 2.) Using the point drawing tool, indicate on Buyer 2's demand curve, D2, the quantity demanded when the price is $3 per wireless earbud. Label this point 'B₂.' 3.) Using the point drawing tool, indicate on the market demand curve for the two buyers, D, the quantity demanded when the price is $3 per wireless earbud. Label this point 'B.' Carefully follow the instructions above, and only draw the required objects. Price per Wireless Earbud ($) 7- 6- D1 D2 4 8 12 16 20 24 28 32 36 40 Wireless Earbuds per Year
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