Suppose an Individual Inverse Demand Curve Is Given as P

question 19

Essay

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.

---

Definitions:

Discretionary Product

A non-essential good or service that consumers may choose to buy when they have disposable income, often susceptible to economic fluctuations.

Shopping Product

A type of product that consumers buy after comparing quality, price, and style from different sellers.

Convenience Product

Goods or services that are readily available to consumers and require minimal effort to purchase, such as everyday household items.

Unsought Product

Describes goods or services that consumers do not actively seek out or necessarily think of buying until a specific need arises or they are directly marketed to.