Exhibit 5-7
-Exhibit 5-7 shows the willingness of Monet and Andrew to pay for latte. If the market price of one cup of latte is $2, then the total demand for latte equals
A)3 cups.
B)6 cups.
C)7 cups.
D)8 cups.
E)10 cups.

Question

Exhibit 5-7 
-Exhibit 5-7 shows the willingness of Monet and Andrew to pay for latte. If the market price of one cup of latte is $2, then the total demand for latte equals
A)3 cups. 
B)6 cups. 
C)7 cups. 
D)8 cups. 
E)10 cups.

Quizplus · Accepted Answer

To find the total demand for latte, we need to add up the quantities demanded by Monet and Andrew at each price level. At a price of $1 per cup, Monet would demand 4 cups and Andrew would demand 3 cups, for a total of 7 cups. At a price of $2 per cup, Monet would demand 3 cups and Andrew would demand 4 cups, for a total of 7 cups. At a price of $3 per cup, Monet would demand 2 cups and Andrew would demand 3 cups, for a total of 5 cups. Therefore, the total demand for latte when the market price is $2 per cup is 7 cups.

Exhibit 5-7 -Exhibit 5-7 Shows the Willingness of Monet and Andrew to and Andrew