An economy has 100 consumers of type 1 and 200 consumers of type 2.If the price of the good is less than $10, then each type 1 consumer demands 10 - p units of the good; otherwise each type 1 demands zero.If the price of the good is less than 8, then each type 2 demands 24 - 3p; otherwise each type 2 demands zero.If the price of the good is 6, then the total amount of the good demanded will be
A)1,600 units.
B)1,800 units.
C)2,000 units.
D)420 units.
E)1,200 units.

Question

Quizplus · Accepted Answer

At a price of $6, each type 1 consumer demands 10 - 6 = 4 units, so 100 type 1 consumers demand 100 * 4 = 400 units. Each type 2 consumer demands 24 - 3*6 = 6 units, so 200 type 2 consumers demand 200 * 6 = 1,200 units. Total demand is 400 + 1,200 = 1,600 units.

An Economy Has 100 Consumers of Type 1 and 200