2) Suppose that there are two types of consumers. "Type 1" consists of 10 identical consumers who each have the following individual demand curve: P=40-2Q. "Type 2" consists of 50 identical consumers who each have the following individual demand curve: P = 73-5Qaz. a. Compute the market demand curve, where P is a function of Q₁, where Q=Qa+ Qa. b. Suppose the supply of this good is perfectly inelastic at a quantity of Q₁ = 30. Compute the market equilibrium price of this good.

2) Suppose that there are two types of consumers. "Type 1" consists of 10 identical consumers who each have the following individual demand curve: P=40-2Q. "Type 2" consists of 50 identical consumers who each have the following individual demand curve: P = 73-5Qaz. a. Compute the market demand curve, where P is a function of Q₁, where Q=Qa+ Qa. b. Suppose the supply of this good is perfectly inelastic at a quantity of Q₁ = 30. Compute the market equilibrium price of this good.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 3.7P

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