Consider a commodity that is being demanded by only two individuals,A and B.If the demand curves of these two individuals is estimated by the following equations: Q¹ = 12 - P and Q² = 14 - 1.5P,the market demand curve will be:

Question

Quizplus · Accepted Answer

To find the market demand curve, you sum the individual demand curves horizontally. This means adding the quantities demanded by each individual at any given price. The equations given are Q¹ = 12 - P for individual A and Q² = 14 - 1.5P for individual B. Adding these together gives Q = (12 - P) + (14 - 1.5P) = 26 - 2.5P.

Consider a Commodity That Is Being Demanded by Only Two