Suppose there are only two consumers (A & B)of good X in the economy.At a price of $1 per unit consumer A demands 12 units and consumer B demands 24 units.The market demand for X at $1 per unit is:
A)36 units.
B)18 units.
C)12 units.
D)288 units.
E)cannot be determined without knowledge of each consumer's marginal utility for the good.

Question

Quizplus · Accepted Answer

Market demand is the sum of individual demands in the market. Hence, the market demand for X at $1 per unit is 12 units from consumer A and 24 units from consumer B which equals to 36 units.

Suppose There Are Only Two Consumers (A & B)of Good