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 I Tex Dex Rex Total Quantity Demanded 7 11 L 15 31

Answer 1

a) price per candy Tex Dex Rex total demand

8 4 3 3 10

7 6 4 7 17

6 8 5 11 24

5 10 6 15 31

4 12 7 19 38

b) DEX demands units that is the least at price 5.

c) REX demands 7 units that is the most at price 7.

c) REX'S quantity demanded increased the most when price falls from 7 to 6.

d) to the left. When individual demand falls, the market demand shifts leftward.

Market demand shifts to right when Dex doubles his purchases.

e) Change in demand.

Change in demand refers to change caused in demand due to factors other than price. Since price is constant, the change is attributed to some other factors.