Suppose there are two consumers in the market for a good and their demand functions are as follows:
d1(p) = 20 – p for any price less than or equal to 20, and d1(p) = 0 at any price greater than 20.
d2(p) = 30 – 2p for any price less than or equal to 15 and d1(p) = 0 at any price greater than 15.
Find out the market demand function.
d1 (p) 20-p
d2 (p) 30-2p
For price less than Rs 15 ( p ≤ 15)
Market demand for a good = d1(p)+d2(p)
20 – p + 30 – 2p
= 50 – 3p
For price more than Rs 15 but less than Rs 20 (15 < ≤ p 20)
Market demand =d1(p) + d2 (p)
= 0+0 (∵for p>15, d1 ( p) 0,d2(p)=0)
= 0
Thus, market demand
= 50 – 3p if p ≤15
= 20 – p if 15 < ≤ p 20
= 0 if p>20
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Welcome to the NCERT Solutions for Class 12 Micro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 14: Suppose there are two consumers in the market for a good and their demand functions are as follows: ....
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