Suppose an individual inverse demand curve is given as P = 2 – 1/2 qi,
Suppose an individual inverse demand curve is given as P = 2 – 1/2 qi, where qi is the quantity demanded by individual i. There are 50 individual consumers with this identical, individual inverse demand curve. Solve for the market demand curve.
What will be an ideal response?
ANSWER
Solve for the individual, regular demand curve, qi = 4 – 2P. Multiply the individual demand curve by 50 to yield QD = 200 – 100P.
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