Table 3.2
-Refer to Table 3.2.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.If the price of Kona coffee rises from $4 to $5, the market quantity demanded would
A)decrease by 35 kg.
B)increase by 115 kg.
C)increase by 35 kg.
D)decrease by 115 kg.

Question

Table 3.2 
-Refer to Table 3.2.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.If the price of Kona coffee rises from $4 to $5, the market quantity demanded would
A)decrease by 35 kg. 
B)increase by 115 kg. 
C)increase by 35 kg. 
D)decrease by 115 kg.

Quizplus · Accepted Answer

At $4, the total quantity demanded is the sum of Luke's, Ravi's, and the rest of the market's demand. When the price increases to $5, each of their demands decreases. The difference in the total quantity demanded at these two prices is the market quantity demanded change.

Table 3.2 -Refer to Table 3.2.The Table Above Shows the Demand Schedules