Table 3-3

-Refer to Table 3-3. 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 falls from $6 to $4, the market quantity demanded would
A) decrease by 89 lb.
B) increase by 26 lb.
C) increase by 61 lb.
D) increase by 110 lb.

Question

Table 3-3
 
-Refer to Table 3-3. 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 falls from $6 to $4, the market quantity demanded would
A) decrease by 89 lb. 
B) increase by 26 lb. 
C) increase by 61 lb. 
D) increase by 110 lb.

Quizplus · Accepted Answer

The correct answer is C.When the price of Kona coffee falls from $6 to $4, Luke's quantity demanded increases from 20 lb to 40 lb, Ravi's quantity demanded increases from 30 lb to 50 lb, and the rest of the market's quantity demanded increases from 60 lb to 80 lb. Therefore, the total market quantity demanded increases by 61 lb.

Table 3-3 -Refer to Table 3-3. the Table Above Shows the Demand