Question

3. Individual and market demand 

Suppose that Larry and Megan are the only consumers of pizza slices in a particular market. The following table shows their annual demand schedules: 

Price (Dollars per slice)	Larry's Quantity Demanded (Slices)	Megan's Quantity Demande d(Slices)
1	40	70
2	25	50
3	15	30
4	5	15
5	0	5

On the following graph, plot Larry's demand for pizza slices using the green points (triangle symbol). Next, plot Megan's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). 

Note: Une segments will automatically connect the points. Remember to plot from left to right,

Answer 1

Individual and market demand

The following is the individual annual demand of two consumers, Larry and Megan.

Price	Larry's Quantity Demanded	Megan's Quantity Demanded
1	40	70
2	25	50
3	15	30
4	5	15
5	0	5

From the above we need to calculate market demand schedule.

Market demand schedule is the horizontal addition of all individual demand schedules.

Price	Larry's Quantity Demanded	Megan's Quantity Demanded	Market Demand Schedule
1	40	70	110
2	25	50	75
3	15	30	45
4	5	15	20
5	0	5	5

Now plotting the individual demand schedules and market demand schedule in the following diagram.

Because of the inverse relationship between price and quantity demanded, the demand curve slopes downwards.