Market demand . Given information: Price per candy Individual quantity demanded Total quantity demanded ‘T’ ‘D’ ‘R 8 3 1 0 - 7 8 2 - 12 6 - 3 4 19 5 17 6 27 4 23 5 80 -

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Answer 1

Question

Chapter 3, Problem 1P

Subpart (a):

To determine

Market demand.

Given information:

Price per candy Individual quantity demanded Total quantity demanded
‘T’ ‘D’ ‘R
8 3 1 0 -
7 8 2 - 12
6 - 3 4 19
5 17 6 27
4 23 5 80 -

Subpart (a):

Expert Solution

Explanation of Solution

When the price is $8, the total quantity demanded can be calculated as follows:

Total quantity demanded=Individual quantity demanded(T+D+R)=3+1+0=4.

Thus, the value of the total quantity demanded when the price $8 is 4 units.

When the price is $7, ‘R’ individual quantity demanded can be calculated as follows:

Total quantity demanded=Individual quantity demanded(T+D+R)12=8+2+RR=2.

Thus, the value of ‘R’ individual quantity demanded is 2 units.

When the price is $6, ‘T’ individual quantity demanded can be calculated as follows:

Total quantity demanded=Individual quantity demanded(T+D+R)19=T+3+4T=12.

Thus, the value of ‘T’ individual quantity demanded is 12.

When the price is $5, ‘D’ individual quantity demanded can be calculated as follows:

Total quantity demanded=Individual quantity demanded(T+D+R)27=17+D+6D=4.

Thus, the value of ‘D’ individual quantity demanded is 4.

When the price is $4, the total quantity demanded can be calculated as follows:

Total quantity demanded=Individual quantity demanded(T+D+R)=23+5+8=36.

Thus, the value of the total quantity demanded is 36.

Economics Concept Introduction

Concept introduction:

Market demand: Market demand refers to the sum of all individual quantities demanded.

Subpart (b):

To determine

Market demand.

Given information:

Price per candy Individual quantity demanded Total quantity demanded
‘T’ ‘D’ ‘R
8 3 1 0 -
7 8 2 - 12
6 - 3 4 19
5 17 6 27
4 23 5 80 -

Subpart (b):

Expert Solution

Explanation of Solution

When the price per candy is $5, then ‘D’ the least amount of quantity demanded is 4, ‘T’ demand is 17 and ‘R’ demand is 6.

When the price per candy is $7, then ‘T’ the least amount of quantity demand is 8, ‘D’ demand is 2 and ‘R’ demand is 2.

Economics Concept Introduction

Concept introduction:

Market demand: Market demand refers to the sum of all individual quantities demanded.

Subpart (c):

To determine

Market demand.

Given information:

Price per candy Individual quantity demanded Total quantity demanded
‘T’ ‘D’ ‘R
8 3 1 0 -
7 8 2 - 12
6 - 3 4 19
5 17 6 27
4 23 5 80 -

Subpart (c):

Expert Solution

Explanation of Solution

When the price of candy decreases from $7 to $6, then ‘T’ the demand increases by 4(12−8) , ’D’ demand increases by 1(3−2) and ‘R’ demand increases by 2(4−2) . Therefore, ‘T’ quantity demanded increases when the price is lowered from $7 to $6.

Economics Concept Introduction

Concept introduction:

Market demand: Market demand refers to the sum of all individual quantities demanded.

Subpart (d):

To determine

Market demand.

Given information:

Price per candy Individual quantity demanded Total quantity demanded
‘T’ ‘D’ ‘R
8 3 1 0 -
7 8 2 - 12
6 - 3 4 19
5 17 6 27
4 23 5 80 -

Subpart (d):

Expert Solution

Explanation of Solution

When ‘T’ withdraws from the market, then there is less demand at each price level and it shifts the demand curve to the left.

If ‘D’ doubles his purchase at each price level, then it increases the demand and it shifts the demand curve to the right.

Economics Concept Introduction

Concept introduction:

Market demand: Market demand refers to the sum of all individual quantities demanded.

Subpart (e):

To determine

Market demand.

Given information:

Price per candy Individual quantity demanded Total quantity demanded
‘T’ ‘D’ ‘R
8 3 1 0 -
7 8 2 - 12
6 - 3 4 19
5 17 6 27
4 23 5 80 -

Subpart (e):

Expert Solution

Explanation of Solution

If the price is fixed at $6 and the total quantity demanded increases from 19 to 38, then it changes the demand that results in the change in price.

Economics Concept Introduction

Concept introduction:

Market demand: Market demand refers to the sum of all individual quantities demanded.

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Answer 2