Question #55589

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:

D1=25-.05P

D2=20-.025P

D3=15-.075P

Where D is the demand and P is the price

Determine :

Market demand equation for the fruit seller

Price at which he can sell all the apples

Individual demands of each of the three customers

D1=25-.05P

D2=20-.025P

D3=15-.075P

Where D is the demand and P is the price

Determine :

Market demand equation for the fruit seller

Price at which he can sell all the apples

Individual demands of each of the three customers

Expert's answer

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.

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.

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