Suppose Lou's demand for good X is given by XL =74 - P/6 and Dora's demand for good X is given by XD =129 -P/4 where x; denotes the quantity demanded by person i, i=L, D and P denotes the price of the good. Now suppose good X is not sold in stores. You have a total 34 units of good X and wish to divide it efficiently between Lou and Dora. How many units do you give to Lou? Enter this amount below. (Hint: You may want to derive and use the "aggregate demand" function.)
Suppose Lou's demand for good X is given by XL =74 - P/6 and Dora's demand for good X is given by XD =129 -P/4 where x; denotes the quantity demanded by person i, i=L, D and P denotes the price of the good. Now suppose good X is not sold in stores. You have a total 34 units of good X and wish to divide it efficiently between Lou and Dora. How many units do you give to Lou? Enter this amount below. (Hint: You may want to derive and use the "aggregate demand" function.)
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.4P
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