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 Tex Dex Rex Total Quantity Demanded 7 6 2 9 15 4 5 4 10 125 15 19

Answer 1

Ans) 1) Market demand = sum of all individual demands

Market demand = demand of Tex + dex + rex

A) Market demand= tex + dex + rex = 4 + 1 + 3 = 8

B) 6+2+ rex = 15

Rex = 15-8 = 7

C) Tex + 3+11 = 22

Tex = 22 -14 = 8

D) 10+ dex + 15 = 29

Dex = 29 - 25 = 4

E) 12+5+19 = 36

2) Change in quantity demanded is when there us change in demand with change in price.

In change in demand, quantity demanded at each price changes.

Here at same amount quantity has changed, so it is change in demand.

Ans- change in demand.

3)

deadweightlost Price per bushel ($) Ceiling ---- shortage 31 55 60 65 70s 7599 RS 98 Od

Shortage = Qd - Qs = 80,000 - 73,000 = 7,000