Table 3-1

-Refer to Table 3-1.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.If the price of Kona coffee rises from $4 to $5,the market quantity demanded would
A)decrease by 35 lbs.
B)increase by 115 lbs.
C)increase by 35 lbs.
D)decrease by 115 lbs.

Question

Table 3-1
 
-Refer to Table 3-1.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.If the price of Kona coffee rises from $4 to $5,the market quantity demanded would
A)decrease by 35 lbs. 
B)increase by 115 lbs. 
C)increase by 35 lbs. 
D)decrease by 115 lbs.

Quizplus · Accepted Answer

At $4, the total demand is the sum of Luke's, Ravi's, and the rest of the market's demand. When the price increases to $5, each of their demands decreases. The difference in total demand at these two prices is the market quantity demanded change.

Table 3-1 -Refer to Table 3-1.The Table Above Shows the Demand Schedules