Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve?

Question

Quizplus · Accepted Answer

To find the market demand curve, we need to add the quantities demanded by both demanders at each price. At $1.00 per glass, Spencer buys 6 glasses and Kate buys 4 glasses, for a total quantity demanded of 10 glasses. At $1.50 per glass, Spencer buys 4 glasses and Kate buys 2 glasses, for a total quantity demanded of 6 glasses. Therefore, the points (quantity demanded = 10, price = $1.00) and (quantity demanded = 6, price = $1.50) are on the market demand curve. Choice C matches one of these points.

Suppose Spencer and Kate Are the Only Two Demanders of Lemonade.Each