In a market there are two consumers. Each consumer has a demand curve of P = 10–0.5q. What is the market demand curve?
Question
Solution 1
The market demand curve is derived by summing the individual demand curves of the two consumers.
Given the individual demand curve P = 10 - 0.5q for each consumer, we can express quantity demanded by each consumer as a function of price: q = 20 - 2P.
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