Answer to Question #55589 in Microeconomics for suman
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
1) Qs = 30 Kgs of apples to be, there are three customers in the market, demand functions: D1=25-.05P D2=20-.025P D3=15-.075P The market demand equation for the fruit seller is: D = D1 + D2 + D3 = 60 - 0.15P Qd = Qs, so: 60 - 0.15P = 30, 0.15P = 30, P = $200 is the price at which he can sell all the apples. The individual demands will be: D1 = 25 - .05*200 = 15 units D2 = 20 - .025*200 = 15 units D3 = 15 - .075*200 = 0 units.