Suppose That Three Consumers Are in the Market for Good

question 122

Multiple Choice

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) demand is P_X = 40 − Q_X; Consumer 2's (inverse) demand is P_X = 50 − 2Q_X; and Consumer 3's (inverse) demand is P_X = 70 − 4Q_X.When P_X = $20,the market will demand:

• A) 41 units.
• B) 47.5 units.
• C) 19.5 units.
• D) None of the preceding statements is correct.

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Definitions:

Quartile

A statistical term describing each of four equal groups into which a population can be divided based on a particular variable.

Annual Family Income

The total amount of money earned by all members of a family within one year.

Income Distribution

The way in which total income is shared amongst the members of a society, often analyzed to understand the extent of economic inequality.

Before-Tax Income

The total income earned by an individual or corporation before taxes have been deducted.