Question

12 (the chart has already been completed)

Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, and Rex are shown below a. Fill in the table (gray-shaded cells) for the missing values Individual Quantities Demanded Total Quantity Price per Candy Tex Dex Rex $8 12 17 23 12 19 27 36 5 5 c. Which buyer's quantity demanded increases the most when the price is lowered from $7 to $6? d. Which direction would the market demand curve shift if Tex withdrew from the market? cick to selec What if Dex doubled his purchases at each possible price? (Cick to selec e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. Is this a “change in the quantity demanded" or a "change in demand? Click to select)

Answer 1

a) When the price is decreased from $7 to $6 Tex's demand will increase from 8 to 12. That is an increase of $4. the answer is Tex.

b) The market demand curve will shift to "left" when Tex withdraw from the market.

c) IF Dex doubles the demand the demand curve will shift to the "right".

d) It is the change in demand as the price is same but the demand has doubled in the market. (for a quantity demand to change it must be due to a change in the price.)