Figure 4.1
-Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant. Assuming Mary and Tom are the only consumers in the market, if the market quantity demanded is 3 the price must be:

Question

Quizplus · Accepted Answer

To find the market price, we need to add up the individual quantities demanded at each price. At a price of $20, Mary's quantity demanded is 0 and Tom's quantity demanded is 1, giving us a total quantity demanded of 1. At a price of $15, Mary's quantity demanded is 1 and Tom's quantity demanded is 2, giving us a total quantity demanded of 3 (the market quantity demanded). Therefore, the price must be $15.

Figure 4.1 -Refer to Figure 4.1 That Shows Mary and Tom's Individual