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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