Answer to Question #55655 in Microeconomics for Mohammed
Where D is the demand and P is the price
Market demand equation for the fruit seller (2.5 marks)
Price at which he can sell all the apples (2.5 marks)
Individual demands of each of the three customers (5 marks
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.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!