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Problem 5 [20 pts] Suppose the market demand for a good, D, consists of two consumers, 1 and 2, where their respective individual demand for
Problem 5 [20 pts] Suppose the market demand for a good, D, consists of two consumers, 1 and 2, where their respective individual demand for the good are D1(p) : 250 4p and D209) 2 100 2.5 p. 1. On one diagram graph the individual demand curves as well as the resulting market demand curve. Mark the intercepts correctly. [05 pts] 2. If supply is given by p = 40; find the amount purchased by each consumer. Illustrate your answer graphically. [05 pts] 3. If instead the supply is given by 5(p) = 100; find the equilibrium market price. Illus trate your answer graphically. [10 pts]
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