Consider a market with two consumers and one good. Person 1's demand curve is P =...
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Consider a market with two consumers and one good. Person 1's demand curve is P = 1-2₁, where P is the price and 21 is the amount of the good consumed by person 1. Likewise, Person 2's demand curve is P = 2 - 2. a) Determine the market demand curve. b) Determine the total consumer surplus (sum of surplus for person 1 and 2) when P = 1.5. Consider a market with two consumers and one good. Person 1's demand curve is P = 1-2₁, where P is the price and 21 is the amount of the good consumed by person 1. Likewise, Person 2's demand curve is P = 2 - 2. a) Determine the market demand curve. b) Determine the total consumer surplus (sum of surplus for person 1 and 2) when P = 1.5.
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According to the given data we have aP 1x1x11P P2 x2 x3 2 P ... View the full answer
Related Book For
Economics Principles and Policy
ISBN: 978-0538453653
12th edition
Authors: William J. Baumol, Alan S. Blinder
Posted Date:
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