Question

Suppose that there are only three consumers of a product. At a price of $3 per unit, the first consumer would buy 6 units of the product, the second consumer would buy 5 units, and the third consumer would buy 7 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $3 would be:

Answer 1

The quantity demanded at $3 would be 18 units.

Step-by-step explanation:

The market demanded curve is the sum of all individual demand curves in the market. We can sum up the individual quantity demanded of a good to find out the quantity demanded by the market as a whole.

Suppose the price of a good is $3. There are three consumers in the market.

The first consumer would buy 6 units, the second would buy 5 units and the third would buy 7 units.

The market demand for the good at the price of $3 would be,

= 6 units + 5 units + 7 units

= 18 units