In Figure 3-2, what are the effects of a price increase from $1 per wireless earbud to $3 per wireless earbud on the quantities demanded by buyer 1 and by buyer 2 individually and combined?

Figure 3-2

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FIGURE 3-2 The Horizontal Summation of Two Demand Curves Panel (a) shows how to sum the demand schedule for one buyer with that of another buyer. In column 2 is the quantity demanded by buyer 1, taken from panel (a) of Figure 3-1. Column 4 is the sum of columns 2 and 3. We (1) Price per Wireless Earbud $5 NW A & 4 2 1 (2) Buyer 1's Quantity Demanded 10 20 30 40 50 plot the demand curve for buyer 1 in panel (b) and the demand curve for buyer 2 in panel (c). When we add those two demand curves horizontally, we get the market demand curve for two buyers, shown in panel (d). Panel (a) (3) Buyer 2's Quantity Demanded 10 20 40 50 60 (4) = (2) + (3) Combined Quantity Demanded per Year 20 40 70 90 110