Suppose the market for a good is composed of 1,000 identical consumers. The market's demand curve is given by Q_M = 150,000 - 25P. What is the equation for an individual consumer's demand curve?

Question

Quizplus · Accepted Answer

The market demand curve is QS = 150,000 - 25P for 1,000 consumers. To find an individual consumer's demand curve, divide the market demand by the number of consumers (1,000). This gives Q = 150 - 0.025P, which matches option D.

Suppose the Market for a Good Is Composed of 1,000