Question

Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex. Dex and Rex are shown in the table below. a. Fill in the table (gray-shaded cells) for the missing values. Individual Quantities Demanded Price per Candy Total Quantity Demanded Tex Dex Rex $8 Book 1 1 3 7 3 2 12 6 3 11 19 rences 5 7 15 26 4 5 19 b. Which buyer demands the least at a price of $5? (Click to select) The most at a price of $7? (Click to select) C. Which buyer's quantity demanded increases the most when the price is lowered from $7 to $6? (Click to select) d. Which direction would the market demand curve shift if Tex withdrew from the market? (Click to select) What if Dex doubled his purchases at each possible price? (Click to select)

Answer 1

Individual Quantities Demanded Price per candy Tex Dex Rex Total Quantity Demanded 141+3=5 12-(3+2)= 7 12 -(3+0) 3 1 19 7 26-(7+15 15 26 19 33 by At a price of $5 Dex demands the least. At a price of $7, Rex demand the most. ey When the price is lowered from $7 to $6, tex's quantity demanded increases by (5-3) = 2; Dex's quantity demanded f by (3-2) = 1 and Rex's ↑ by (11-7)= 4. Answer: Rex dy if Tex with dosen from the market, total quantity demanded will d at each price This will shift market demand curve leftward, so if Dex doubles his purchases at each price, total quantity demanded will ļ at each price and market demand curve will shift rightward.