Suppose That Three Consumers Are in the Market for Good

question 23

Multiple Choice

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) demand is P_X = 20 − Q_X; Consumer 2's (inverse) demand is P_X = 20 − 2Q_X; and Consumer 3's (inverse) demand is P_X = 20 − 4Q_X.When P_X = $10,the market will demand:

• A) 17.5 units and the inverse market demand curve is P_X = 20 − 0.5714Q_X.
• B) −30 units and the inverse market demand curve is P_X = 60 − 7Q_X.
• C) 17.5 units and the inverse market demand curve is P_X = 60 − 7Q_X.
• D) None of the preceding statements is correct.