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THE MArket for lemon has 10 Potential consumers each having an individual demand curve P= 101-10Qi on where- P as price in dollars per cup and Qi as the numbers of cups demanded per week by the ith consumer, fand the market demand curve using algebra. Draw an individual demand curve & the market demand curve. what is the quantity demanded by each consumer and the market as a whole when lemon is priced at p= $1/ cup​

1 Answer

5 votes

Answer:

Step-by-step explanation:

Q = \sum_{i=1}^{10}q_i \\ = q_1+q_2+q_3+...+q_{10} \\ = (\frac{101-P}{10})_1 + (\frac{101-P}{10})_2 + (\frac{101-P}{10})_3 + … + (\frac{101-P}{10})_{10} \\ = (10.1 -0.1P)_1 + (10.1 -0.1P)_2 + (10.1 -0.1P)_3 + … + (10.1 -0.1P)_{10} \\ = 10 \times (10.1 -0.1P) \\ = 101 -P \\ P = 101 - QQ=∑

i=1

10

q

i

=q

1

+q

2

+q

3

+...+q

10

=(

10

101−P

)

1

+(

10

101−P

)

2

+(

10

101−P

)

3

+…+(

10

101−P

)

10

=(10.1−0.1P)

1

+(10.1−0.1P)

2

+(10.1−0.1P)

3

+…+(10.1−0.1P)

10

=10×(10.1−0.1P)

=101−P

P=101−Q

This is the market demand curve for lemonade.

Given the individual demand curve and market demand curve, the graphs will be as follows:

The market demand curve is flatter than the individual demand curve.

Given the price of one cup of lemonade, the individual demand is calculated as follows:

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