The table shows individual demand schedules for a market.
Table 4-1

-Refer to Table 4-1.If the price increases from $1.00 to $1.50,

Question

The table shows individual demand schedules for a market.
Table 4-1
 
-Refer to Table 4-1.If the price increases from $1.00 to $1.50,

Quizplus · Accepted Answer

To find the change in market demand, we need to sum up the individual quantities demanded at each price in the table. At $1.00, the total quantity demanded is 65 units (25 + 20 + 10 + 10). At $1.50, the total quantity demanded is 58 units (20 + 18 + 10 + 10), which is a decrease of 7 units. Therefore, the correct answer is D. Option A is incorrect as there is no evidence to suggest that the market demand decreases by 20 units. Option B is incorrect as there is no indication that individual demand curves will shift. Option C is also incorrect as the quantity demanded in the market decreases by 7 units, not 2 units.

The Table Shows Individual Demand Schedules for a Market