If consumer 1 has the demand function x₁ = 1,000

Question

If consumer 1 has the demand function x₁ = 1,000 - 2p and consumer 2 has the demand function x₂ = 500 - p, then the aggregate demand function for an economy with just these two consumers would be x = 1,500 - 3p for p < 500.

Quizplus · Accepted Answer

The aggregate demand function is the sum of individual demand functions: x = (1,000 - 2p) + (500 - p) = 1,500 - 3p.

If Consumer 1 Has the Demand Function X1 = 1,000