Question

Suppose that you, Julio, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (DH), along with Julio's demand (D2) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsegment 1. segment 2. and D segment 3 Carefully follow the instructions above, and only draw the required objects.

Answer 1

We can see

At a price of $0,

Total market quantity demanded =8+10+12=30 units

For price of $10, quantity demanded is zero for me. It means that market demand will be equal to D2+D3 for price range given by (10,20)

Total market quantity demanded at a price of $10=0+4+8=12 units

For price of $20, quantity demanded is zero for me and Julio. It means that market demand will be equal to D3 for price range given by (20,30)

Total market quantity demanded at a price of $20=0+4=4 units

We can make the market demand is drawn as

I shall use the same graph given by you to make the concept clear.

30 P 28/1 26 DSegment 3 DSegment 2 Price of CDs DSegment 3 FITT 612 12 16 18 20 22 24 26 28 30 Quantity of CDs