Final answer:
To create the market demand curve for good X with 100 consumers each having a demand curve represented by Q = 2/P, we sum the individual demand curves, which results in the market demand curve Qtotal = 200/P.
Step-by-step explanation:
The student's question asks for the market demand curve for good X when there are 100 consumers, each with an individual demand curve given by Q = 2/P, where Q represents the quantity demanded and P represents the price.
To find the market demand curve, we need to sum the individual demand curves of all 100 consumers. Since each consumer has the demand curve Q = 2/P, for 100 consumers, the total quantity demanded at any price will be 100 times the individual quantity demanded. We can express this as:
Market Demand Curve: Qtotal = 100 * (2/P)
Now, we simplify the expression to get:
Qtotal = 200/P
This equation represents the market demand curve for good X, which shows the total quantity demanded by all consumers in the market at various prices.
Using this market demand curve, we can analyze the market dynamics and determine the equilibrium price and quantity. If we know the market supply curve, we can find the equilibrium by setting the quantity demanded equal to the quantity supplied (Qd = Qs) and solving for the price.