Suppose Julia and Zach are the only consumers of milk. Julia's demand for milk is defined as at prices below $4 and zero for prices above $4. Zach's demand for milk is defined as at prices below $5 and zero for prices above $5.
A) The market demand curve is upward sloping
B) The market demand curve is a downward sloping straight line
C) The market demand curve is kinked at a quantity of 2 units
D) The market demand curve is kinked at a quantity of 1 unit

Question

Suppose Julia and Zach are the only consumers of milk. Julia's demand for milk is defined as  at prices below $4 and zero for prices above $4. Zach's demand for milk is defined as  at prices below $5 and zero for prices above $5.
A) The market demand curve is upward sloping 
B) The market demand curve is a downward sloping straight line 
C) The market demand curve is kinked at a quantity of 2 units 
D) The market demand curve is kinked at a quantity of 1 unit

Quizplus · Accepted Answer

The Answer is C

Suppose Julia and Zach Are the Only Consumers of Milk