Table 4-1

-Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Question

Table 4-1
 
-Refer to Table 4-1.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Quizplus · Accepted Answer

Using the table, we can see that at a price of $1.00, the total market quantity demanded is 30 units. At a price of $1.50, the quantity demanded by each individual buyer decreases by 2 units, as shown in the table. Thus, the total market quantity demanded at a price of $1.50 would be:

Qd = 30 - 2 - 2 - 2 - 1.75 = 22.25

Therefore, the market quantity demanded decreases by 7 units (30 - 22.25 = 7) when the price increases from $1.00 to $1.50. Hence, the correct answer is C.

Table 4-1 -Refer to Table 4-1.If These Are the Only Four Buyers