Answer to Question #71151 in Microeconomics for MUNIRA
Question #71151
In a particular town there are 100 cars and 50 motorcycles. Each car owner has a
demand curve for petrol given by: Qdc = 20 – 5p for p ≤ 4 and Qdc = 0 for p > 4. Each
motorcycle owner has the following demand function for petrol: Qdm = 15 – 3p for p ≤ 5
and Qdm = 0 for p > 5. Prices are expressed as £ per gallon, and quantities as gallons per
week.
a. If the price is £3, now many gallons of petrol per week are bought by (i) each car
owner and (ii) each motorcycle owner?
b. Sketch the market demand curve for petrol (that is, the combined demand from
car and motorcycle owners).
c. Write an algebraic expression for the market demand function.
demand curve for petrol given by: Qdc = 20 – 5p for p ≤ 4 and Qdc = 0 for p > 4. Each
motorcycle owner has the following demand function for petrol: Qdm = 15 – 3p for p ≤ 5
and Qdm = 0 for p > 5. Prices are expressed as £ per gallon, and quantities as gallons per
week.
a. If the price is £3, now many gallons of petrol per week are bought by (i) each car
owner and (ii) each motorcycle owner?
b. Sketch the market demand curve for petrol (that is, the combined demand from
car and motorcycle owners).
c. Write an algebraic expression for the market demand function.
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