Suppose that three consumers are in the market for good X.Consumer 1's (inverse) P_X = 20 - Q_X; Consumer 2's (inverse) demand is P_X = 20 - 2Q_X; and Consumer 3's (inverse) demand is P_X = 20 - 4Q_X.When P_X = $10, the market will demand A)17.5 units and the inverse market demand curve is P_X = 20 - 0.5714Q_X. B)-30 units and the inverse market demand curve is P_X = 60 - 7Q_X. C)17.5 units and the inverse market demand curve is P_X = 60 - 7Q_X. D)none of the statements associated with the questions are correct.

Question

Quizplus · Accepted Answer

At P_X = $10, Consumer 1 demands 10 units, Consumer 2 demands 5 units, and Consumer 3 demands 2.5 units, totaling 17.5 units. The inverse market demand curve is derived by summing individual demands, resulting in P_X = 20 - 0.5714Q_X.

Suppose That Three Consumers Are in the Market for Good