Question

Suppose that you, Julio, and Yusef constitute the market for DVDs. Your demand for DVDs is illustrated in the graph to the right (D1), along with Julio's demand (D) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for DVDs. To do this, you will need to use three line segments labeled Dsegment 1. Dsegment 2 and Dsegment 3 Carefully follow the instructions above, and only draw the required objects. Price of DVDs o+ T 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Quantity of DVDs

Answer 1

Market demand is the sum of individual demands.

When P=$30 , Then demand for each individual is 0, so market demand vertical intercept is zero . And when P=0 ,then D1 = 14 , D2 = 6 and D3 = 9 . this implies that market demand = (14+6+9) = 29 . So, the horizontal intercept = 29 .

And when P=10 ,then D1= 0 , D2 = 3 and D3 = 6 , so market demand = (3+6)=9.

and When P=20 , then , D2=0 , D3 = 3, so market demand = 3.

By joining these we points we get the market demand curve as shown below:

26 24 22 20 (4 MAKik Demand L 8 10 12 y 16 1R 20 22 24 26 28 3- 2 uentaty af DIDe