Nathan and Joe are shopping for video games. The demand function of George for Track and field games is Q = 40 - 4P, and Georgia’s demand function is Q = 36 - 3P. What will their combined demand be if the price is $2? $10? If we add George and Georgia’s demand functions, we get: At $2 a game, both George and Georgia’s will have positive demand for field games, and so we can use the combined equation to get At $10 a game, however, George’s demand function gives negative demand, which we know means he just has 0 demand for field games. In this case, we ignore George's function, and just use Georgia’s to figure out their combined demand, since using the combined function would give the wrong answer.
Nathan and Joe are shopping for video games.
The
What will their combined demand be if the
If we add George and Georgia’s demand functions, we get:
At $2 a game, both George and Georgia’s will have positive demand for field games, and so we can use the combined equation to get
At $10 a game, however, George’s demand function gives negative demand, which we know means he just has 0 demand for field games. In this case, we ignore George's function, and just use Georgia’s to figure out their combined demand, since using the combined function would give the wrong answer.
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