If 20 individual consumers have the following demand curve: p=30−3q. what is market demand
Question
If 20 individual consumers have the following demand curve: p=30−3q. what is market demand
Solution
The market demand is the sum of the individual demands of all consumers in the market. In this case, if each individual consumer has the demand curve p = 30 - 3q, then the market demand curve would be the sum of the demands of all 20 consumers.
So, the market demand curve would be p = 3020 - 320q, which simplifies to p = 600 - 60q.
This means that for each price level, the quantity demanded in the market is 20 times the quantity that would be demanded by an individual consumer.
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