1) Suppose that three consumers are in the market for good X. Consumer 1's (inverse) demand is P_X = 40 5Q_X; Consumer 2's (inverse) demand is P_X = 10 Q_X; and Consumer 3's (inverse) demand is P_X = 30 2Q_X. When P_X = $5, the market will demand

Multiple Choice

• 24.5 units.
• None of the statements is correct.
• 15.5 units.
• 12 units.

2) If widgets and gidgets are complements and both are normal goods, then a decrease in the demand for widgets will result from

Multiple Choice

• a decrease in the price of gidgets and a decrease in income.
• a decrease in the price of gidgets.
• an increase in the price of widgets.
• a decrease in income.