Question
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex for candy are given in the table below. a. Fill in the table for the missing values.
Price per Candy | Tex Qd | Dex Qd | Rex Qd | Total Quantity Demanded |
$17 | 1 | 1 | 3 | |
16 | 3 | 2 | 12 | |
15 | 3 | 11 | 19 | |
14 | 7 | 15 | 26 | |
13 | 9 | 5 | 19 |
b. (i) Which buyer demands the least at a price of $14? (Click to select) Dex Rex Tex (ii) Which buyer demands the most at a price of $16? (Click to select) Dex Tex Rex c. Which buyer's quantity demanded increases the most when the price is lowered from $16 to $15 (in absolute terms)? (Click to select) Dex Tex Rex d. (i)Which direction would the market demand curve shift if Tex withdrew from the market? (Click to select) No change Right Left (ii) Which direction would the market demand curve shift if Dex doubled his purchases at each possible price? (Click to select) Left Right No change e. Suppose that at a price of $15, the total quantity demanded increases from 19 to 29. Is this a "change in the quantity demanded" or a "change in demand"? (Click to select) Change in the quantity demanded Change in demand
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started