Kate buys three chocolate bars per week at a price of $1.25, five at a price of $1, and

seven at a price of 75 cents. Her friend Carlo buys five chocolate bars at a price of

$1.25, eight at a price of $1, and 11 at a price of 75 cents.

a. If these two friends are the only consumers in the market for chocolate bars, what

are three points on the market demand curve?

b. Does this market demand curve satisfy the law of demand? Why or why not?

c. Draw a graph showing Kate's and Carlo's demand curves DK and De and market

demand curve Dmo Plot three points for each of the three curves.

d. If Kate and Carlo both double their purchases of chocolate bars per week at

every price, what will be the effect on the market demand curve you drew in part

c? How would you describe this change? Draw this new demand curve D on

ml

your graph. Plot three points on this curve.