Final answer:
The market demand function for 10 identical consumers is P = 10(100 - 0.5Q). The slope of the market demand function is -0.5 and the intercept is 100. At a price level of 12 birr, the total kilograms of banana demanded in the market is 197.6 kgs. Each buyer would demand approximately 19.76 kgs of banana at that price level.
Step-by-step explanation:
To find the market demand function for 10 identical consumers, we need to sum up the individual demand curves for each consumer. Since there are 10 identical consumers, we can multiply the individual demand curve by 10. So, the market demand function is:
P = 10(100 - 0.5Q)
The slope of the market demand function represents the change in price for a given change in quantity demanded. In this case, the slope is -0.5, which means that for every 1 unit increase in quantity demanded, the price decreases by 0.5 units. The intercept of the market demand function represents the price when quantity demanded is zero. In this case, the intercept is 100, which means that when there is no demand for bananas, the price is 100.
To calculate the total kilograms of banana demanded in the market at a price level of 12 birr, we can substitute the price value into the market demand function and solve for quantity:
12 = 10(100 - 0.5Q)
Simplifying the equation, we get:
1.2 = 100 - 0.5Q
0.5Q = 100 - 1.2
0.5Q = 98.8
Q = 197.6
So, the total kilograms of banana demanded in the market at a price level of 12 birr is 197.6 kgs.
To estimate the kilograms of banana demanded by each buyer at a price level of 12 birr, we can divide the total quantity demanded by the number of buyers (10 in this case):
Kgs demanded by each buyer = Total quantity demanded / Number of buyers
Kgs demanded by each buyer = 197.6 / 10
Kgs demanded by each buyer = 19.76