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.

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Solution

(i) Market Demand Schedule

$\begin{matrix} Price & Market Demand 1 & 60 + 55 + 24 = 139 2 & 50 + 40 + 13 = 103 3 & 40 + 25 + 5 = 70 4 & 30 + 10 + 0 = 40 5 & 20 + 0 + 0 = 20 \end{matrix}$

(ii) When Mohan drops, new market demand schedule is given as:

$\begin{matrix} Price & Market Demand 1 & 60 + 24 = 84 2 & 50 + 13 = 63 3 & 40 + 5 = 45 4 & 30 + 0 = 30 5 & 20 + 0 = 20 \end{matrix}$

(iii) When Bhim joins the market, the new market demand schedule is given as:

$\begin{matrix} Price & Market Demand 1 & 139 + 30 = 169 2 & 103 + 25 = 128 3 & 70 + 20 = 90 4 & 40 + 15 = 55 5 & 20 + 10 = 30 \end{matrix}$

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Price (Rs.)	Demand Schedule of Mohan (Units)	Demand Schedule of Rohan (Units)	Demand Schedule of Mitu (Units)
$1$ $2$ $3$ $4$ $5$	$60$ $50$ $40$ $30$ $20$	$55$ $40$ $25$ $10$ $0$	$24$ $13$ $5$ $0$ $0$

Price (Rs.)	Demand schedule of mohan (Units)	Demand schedule of Rohan (Units)	Demand Schedule of Mitu (Units)
1 2 3 4 5	60 50 40 30 20	55 40 25 10 0	24 13 5 0 0

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$1$ $2$ $3$ $4$ $5$	$9$ $7$ $6$ $4$ $3$	$7$ $6$ $5$ $4$ $3$

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