Question

Question 1 The table below shows John's Jack's, and it's individual demand schedules for apples. Pis the price of apples in US dollars per pound (Sb, and is the quantity demanded in pounds of apples per week (bsweek) at each given price. Jars Demund John's Demand Schedule J ack's Demand Schedule Market Demand Schedule (a) Clearly showing all your work hortal summation for emple calculate the market demand for apples per week at each given price and show your answers in the last two colums of the table above. (Spes) (b) In the space below, neatly sketch the market demand come for apples per week, making sure you have clearly labeled all its key features (1 pts) (e) On the graph you have sketched above, shade the area that represents the market consumer surplus at a price of $2.50 and bibel this area as pes) (d) How much is willing to pay for the pound of apples and what is her marginal benefit from that 7 pound of apples? (Spes) (c) How much is the market willing to pay for the 21 pound of apples, and what is the murgiul social benefit from tu pound of apples? Spes)

Answer 1

a Market demand of apples Quantity (Qd) Price (P) 1:00 1:50 2:00 2:50 2:99 (7+7+7 = 21 16+5+6)= 17 115+4+4)= 13 (5+3 + 2) = 10 (3+2+1) = 6.
Similarly we can calculate c and d from the calculations of a, b and c