In Gas Pump, South Dakota, there are two kinds of consumers, Buick owners and Dodge owners. Every Buick owner has a demand function for gasoline DB (p) = 20 − 5p for p ≤ 4 and DB (p) = 0 if p > 4. Every Dodge owner has a demand function DD (p) = 15 − 3p for p ≤ 5 and DD (p) = 0 for p > 5. (Quantities are measured in gallons per week and price is measured in dollars.) Suppose that Gas Pump has 150 consumers, 100 Buick owners, and 50 Dodge owners.
(a) If the price is $3, what is the total amount demanded by each individual Buick Owner? ________. And by each individual Dodge owner?________.
(b) What is the total amount demanded by all Buick owners? ________. What is the total amount demanded by all Dodge owners? ___________.
(c) What is the total amount demanded by all consumers in Gas Pump at a price of 3?
(d) On the graph below, use blue ink to draw the demand curve representing the total demand by Buick owners. Use black ink to draw the demand curve representing total demand by Dodge owners. Use red ink to draw the market demand curve for the whole town.
(e) At what prices does the market demand curve have kinks? At ______ and ______ .
(f) When the price of gasoline is $1 per gallon, how much does weekly demand fall when price rises by 10 cents?
(g) When the price of gasoline is $4.50 per gallon, how much does weekly demand fall when price rises by 10 cents?
(h) When the price of gasoline is $10 per gallon, how much does weekly demand fall when price rises by 10 cents?