Suppose there are 20 consumers for a good and they have identical demand functions:

D(p) = 10 − 3p for any price less than or equal to and d₁(p) = 0 at any price greater than .

What is the market demand function?

Open in App

Solution

d(p) = 10 − 3p if p ≤

d₁ (p) = 0 if p >

Market demand = Summation of demand of all the consumers in the market

For price≤

Market demand = 20 ∑d (p) ( Since consumers have identical demand curve)

= 20 × (10 − 3p)

= 200 − 60p

For price >

Market demand = 20 × d₁(p)

= 20 × 0

= 0

Suggest Corrections

Similar questions

Suppose there are 20 consumers for a good and they have identical demand d(p) = 10 - 3p for any price less than or equal to $\frac{10}{3}$ and $d_{1}$ (p)=0 at any price greater than $\frac{10}{3}$ . What is the market demand function?

Suppose there are two consumers in the market for a good and their demand functions are as follows:

d₁(p) = 20 − p for any price less than or equal to 20 and d₁(p) = 0 at any price greater than 20.

d₂(p) = 30 − 2p for any price less than or equal to 15 and d₁(p) = 0 at any price greater than 15.

Find out the market demand function.

Consider a market where there are just two consumers and suppose their demands for the good are given as follows:

Calculate the market demand for the goods.

d₁

d₂

Q. Consider a market where there are just two consumers and suppose their demands for the good are given as follows:

p	$d_{1}$	$d_{2}$
1	9	24
2	8	20
3	7	18
4	6	16
5	5	14
6	4	12

Calculate market demand for the good.

Suppose there are three consumers in a particular market : Ashok, Mohan and Jay. Their demand schedules are given in the following table :

$\begin{matrix} Price & Quantity Demanded & Quantity Demanded & Quantity Demanded by Ashok & by Mohan & by Jay 1 & 60 & 55 & 24 2 & 50 & 40 & 13 3 & 40 & 25 & 5 4 & 30 & 10 & 0 5 & 20 & 0 & 0 \end{matrix}$

(i) Derive the market demand schedule.

(ii) Suppose Mohan drops out of the market. Derive the new market demand schedule.

(iii) Suppose Mohan stays in the market and another person, Bhim, joins the market, whose quantity demanded at any given price is half of that of Ashok. Derive the new market demand schedule.

Join BYJU'S Learning Program

Suppose there are 20 consumers for a good and they have identical demand functions: D(p) = 10 − 3p for any price less than or equal to and d1(p) = 0 at any price greater than . What is the market demand function?

d(p) = 10 − 3p if p ≤ d1 (p) = 0 if p > Market demand = Summation of demand of all the consumers in the market For price≤ Market demand = 20 ∑d (p) ( Since consumers have identical demand curve) = 20 × (10 − 3p) = 200 − 60p For price > Market demand = 20 × d1(p) = 20 × 0 = 0

Suppose there are 20 consumers for a good and they have identical demand functions:

D(p) = 10 − 3p for any price less than or equal to and d₁(p) = 0 at any price greater than .

What is the market demand function?