Question
Let's say that the demand side of the market for Blue Soda is comprised of 3 leading agents/individuals: Anthony, Brad, and Claire. Let P be
Let's say that the demand side of the market for Blue Soda is comprised of 3 leading agents/individuals: Anthony, Brad, and Claire. Let P be the price of 1 liter of Blue Soda, and Qdbe the quantity demanded of Blue Soda in liters.
Here are the key points to the problem:
i) Anthony buys only one liter of Blue Soda if the price of it falls below his choke price of $10.
ii) Brad's demand for Blue Soda is defined by QdB = 5 - P/2
iii) Claire buys 2 liters if the price is below $5, 1 liter if the price is between $5 and $10, and nothing if the price is above $10.
Using this information, please sketch the individual demands and the market demand by aggregating the three agents/individuals. Label the graph clearly. Please make sure to sketch the individual demands first and then sketch the market demand.
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