Asked by
jennifer lopez
on Oct 14, 2024
Verified
In a small Kansas town, there are two kinds of gasoline consumers: 100 Buick owners and 50 Dodge owners.Each Buick owner has the demand function Db(p) max0, 20 5p and each Dodge owner has the demand function Dd max0, 15 3p.In this town, the market demand curve has
A) no kinks but gets steeper as price rises.
B) no kinks but gets flatter as price rises.
C) constant slope since individual demand curves have constant slope.
D) a kink at p 4 and another at p 5.
E) a kink at p 35/8.
Market Demand Curve
A graphical representation that shows the quantity of a good that all consumers are willing to purchase at various prices.
Gasoline Consumers
Individuals or entities that purchase gasoline for various uses such as fueling vehicles, generators, and other equipment.
Demand Function
A mathematical function showing the relationship between the quantity of a good demanded and its price, along with other determinants like consumer's income and prices of related goods.
- Absorb the essential elements of demand and supply in the discipline of economics.
Verified Answer
ES
Learning Objectives
- Absorb the essential elements of demand and supply in the discipline of economics.