During a given week, Student 1 demands 1 milkshake(s) at a price of $2.00, 2 at $1.80, 3 at $1.60, and 4 at $1.40. Student 2 demands 5 milkshake(s) at a price per milkshake of $2.00, 7 at $1.80, 9 at $1.60, and 11 at $1.40.

a. Both the demand curve for Student 1, D₁, and the demand curve for Student 2, D₂,

(Click to select)

satisfy

do not satisfy

the law of demand, because as the price of milkshakes drops the quantity demanded of milkshakes on each demand curve

multiple choice 2

• falls, which goes against the inverse relationship between price and quantity associated with the law of demand.
• falls, which is in line with the inverse relationship between price and quantity associated with the law of demand.
• rises, which is in line with the inverse relationship between price and quantity associated with the law of demand.
• rises, which goes against the inverse relationship between price and quantity associated with the law of demand.

b. Assuming that the two students are the only consumers in the market, the market demand curve D_mcan be found by

multiple choice 3

• subtracting the quantity demanded of Student 1 from the quantity demanded of Student 2 at each price.
• subtracting the quantity demanded of Student 2 from the quantity demanded of Student 1 at each price.
• adding together the prices that Student 1 and Student 2 are willing to pay for each quantity level.
• adding together the quantities demanded for Student 1 and Student 2 at each price.

c. Four points on the market demand curve D_mare:

multiple choice 4

• (5, $4.00), (7, $3.60), (9, $3.20), (11, $2.80)
• (6, $2.00), (9, $1.80), (12, $1.60), (15, $1.40)
• (1, $4.00), (2, $3.60), (3, $3.20), (4, $2.80)
• (6, $4.00), (9, $3.60), (12, $3.20), (15, $2.80)

d. Draw a graph showing the demand curves for Student 1 and Student 2, D₁and D₂, as well as the market demand curve D_m.Plot 4 points for each curve using the tools given below. Plot 12 points in total to draw all 3 curves.