to disagree? $ 10. Suppose a little economy has ten people in it. Each person has a unit demand for cars, which means that each person is willing to pay Ti for one car, but zero for a second. The demands for each person are given below in the table. Person 1 2 3 4 5 6 7 8 9 10 x (in 000's) 20 30 40 20 60 10 50 70 5 30 a. Make two graphs, side by side. In the graph on the left graph person 7's demand curve. In the graph on the right graph the market demand curve. Be extremely careful to label everything accurately in your graph. b. Now suppose that the market price for cars is $40,000. Who is the marginal consumer? Who are the intra-marginal consumers? Which individuals do not buy a car? c. Now suppose that the price decreases to $30,000. What is the arc elasticity of demand? Is the demand elastic or inelastic (use the average quantities and prices in your calculation)