P= 101-100 where p is price in dollar per cup and q is the number of cup demand. Per week by the with consumer
Answers
Answer:
get the best experience on our website. Learn more
Got it!


Sign in
How it works
Examples
Reviews
Homework answers
Blog
Contact us
Submit
100 882
Assignments Done
97.4%
Successfully Done
In August 2021

Answer to Question #161074 in Microeconomics for Faisa shiferaw
Answers>
Economics>
Microeconomics
Question #161074
The market for lemon has 10potential consumers ,each having an individual demand curve ,p =101-10Q,where p is price in a dollars per cup and Qi is the number of cups demanded per week by the ith consumer . Find the market demand curve using algebra.Draw an individual demand curve and the market demand curve.What is the quantity demand by each consumer and in the market as a whole when lemon is priced at p=$1/cup?
Expert's answer
Q = \sum_{i=1}^{10}q_i \\ = q_1+q_2+q_3+...+q_{10} \\ = (\frac{101-P}{10})_1 + (\frac{101-P}{10})_2 + (\frac{101-P}{10})_3 + … + (\frac{101-P}{10})_{10} \\ = (10.1 -0.1P)_1 + (10.1 -0.1P)_2 + (10.1 -0.1P)_3 + … + (10.1 -0.1P)_{10} \\ = 10 \times (10.1 -0.1P) \\ = 101 -P \\ P = 101 - QQ=∑i=110qi=q1+q2+q3+...+q10=(10101−P)1+(10101−P)2+(10101−P)3+…+(10101−P)10=(10.1−0.1P)1+(10.1−0.1P)2+(10.1−0.1P)3+…+(10.1−0.1P)10=10×(10.1−0.1P)=101−PP=101−Q
This is the market demand curve for lemonade.
Given the individual demand curve and market demand curve, the graphs will be as follows:

The market demand curve is flatter than the individual demand curve.
Given the price of one cup of lemonade, the individual demand is calculated as follows:
P = 101 - 10Q_i \\ Q_i = \frac{101-1}{10} = 10P=101−10QiQi=10101−1=10
Hence, the individual demand for lemonade is 10 cups at $1.
The market demand is calculated as follows:
P = 101 -Q \\ Q = 101 -1 = 100P=101−QQ=101−1=100
Hence, the market demand for lemonade is 100 cups at $1.
Answer:
P= 101-100 where p is price in dollar per cup and q is the number of cup demand. Per week by the with consumer