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Amy's demand function for ice cream cones is q = 4 P , and Brian's demand function is q = 6 2P . Assume Amy
Amy's demand function for ice cream cones is q = 4 P , and Brian's demand function is
q = 6 2P . Assume Amy and Brain are the only consumers in the market.
- (a) What is the aggregate demand of both Amy and Brian?
- (b) Suppose the market is perfectly competitive and the supply function is Q = P 1. What is the equilibrium price and quantity?
- (c)Plot the aggregate demand function and the market equilibrium on a graph.
- (d) Now suppose there is another consumer Charlie in the market and his demand
- function is q = 8 4P . What is the aggregate demand function of all 3 consumers?
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