1. There is a fruit seller who has 30 Kgs of apples to be sold and he wants to fix a price so that all the apples are sold. There are three customers in the market and their individual demand functions are given below:
Where D is the demand and P is the price
Market demand equation for the fruit seller
Price at which he can sell all the apples
Individual demands of each of the three customers
Market demand (D) equation for the fruit seller: D=D1+D2+D3=25-0.05*P+20-0.025*P+15-0.075*P => D=60-0.15*P
Price at which apples will be sold: Total quantity of apples = 30 => 30=60-0.15*P => P=200 (for price equal to 200 all the apples will be sold).
Individeal demands of each of three customers: D1=25-0.05*200=15 => D1=15 D2=20-0.025*200=15 => D2=15 D3=15-0.075*200=0 => D3=0