Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
12th Edition
ISBN: 9781285738352
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 3, Problem 1VQP
To determine
Derivation of the market demand curve and its diagrammatic representation.
Expert Solution & Answer
Explanation of Solution
The market demand curve can be derived by adding each individual’s quantity demand at a different price. It can be represented as follows:
In Figure 1, both panels (a) and (b) indicate the individual demand curve of Buyer 1 and Buyer 2, respectively, where the horizontal axis represents quantity demanded and the vertical axis represents the price of the good. In the figure, Buyer 1 demanded 10 units and Buyer 2 demanded 9 units at $9. Therefore, the total quantity demanded at $9 is 19 units. Similarly, Buyer 1 demanded 20 units and Buyer 2 demanded 18 units at $7. Hence, the total quantity demanded at $7 is 38 units. In Panel (c), the vertical axis represents the total quantity demanded in the market and the vertical axis represents price. By plotting each individual’s quantity demand at different prices creates a market demand curve.
Economics Concept Introduction
Demand curve: A demand curve shows the level of quantity demanded at different price levels. Since there is a negative relationship between the price and the quantity, the demand curve slopes downward.
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Chapter 3 Solutions
Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
Ch. 3.1 - Prob. 1STCh. 3.1 - Prob. 2STCh. 3.1 - Prob. 3STCh. 3.1 - Prob. 4STCh. 3.2 - Prob. 1STCh. 3.2 - Prob. 2STCh. 3.2 - Prob. 3STCh. 3.3 - Prob. 1STCh. 3.3 - The price of a personal computer of a given...Ch. 3.3 - Prob. 3ST
Ch. 3.3 - Prob. 4STCh. 3.3 - Prob. 5STCh. 3 - Prob. 1VQPCh. 3 - Prob. 2VQPCh. 3 - Prob. 3VQPCh. 3 - Prob. 4VQPCh. 3 - Prob. 5VQPCh. 3 - Prob. 6VQPCh. 3 - Prob. 1QPCh. 3 - Prob. 2QPCh. 3 - Prob. 3QPCh. 3 - Prob. 4QPCh. 3 - Prob. 5QPCh. 3 - Prob. 6QPCh. 3 - Prob. 7QPCh. 3 - Prob. 8QPCh. 3 - Prob. 9QPCh. 3 - Prob. 10QPCh. 3 - Prob. 11QPCh. 3 - Prob. 12QPCh. 3 - Predict what happens to the equilibrium price of...Ch. 3 - Prob. 14QPCh. 3 - Prob. 15QPCh. 3 - Prob. 16QPCh. 3 - Prob. 17QPCh. 3 - Prob. 18QPCh. 3 - Prob. 19QPCh. 3 - Prob. 20QPCh. 3 - Prob. 21QPCh. 3 - Prob. 22QPCh. 3 - Prob. 23QPCh. 3 - Prob. 24QPCh. 3 - Prob. 25QPCh. 3 - Prob. 26QPCh. 3 - Prob. 27QPCh. 3 - Prob. 1WNGCh. 3 - Prob. 2WNGCh. 3 - Prob. 3WNGCh. 3 - Prob. 4WNGCh. 3 - Prob. 5WNGCh. 3 - Prob. 6WNGCh. 3 - Prob. 7WNGCh. 3 - Prob. 8WNG
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