What is the market demand for ice cream at the price of $1.50 assuming that the only consumers in this market are customers B and C?
Understand the Problem
The question is asking us to calculate the market demand for ice cream at a specific price ($1.50) based on the individual demand schedules of customers B and C. To find this, we need to sum the quantities demanded by both consumers at that price.
Answer
The market demand at the price of $1.50 is $20$ quarts/week.
Answer for screen readers
The market demand for ice cream at the price of $1.50 is $20$ quarts/week.
Steps to Solve
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Identify Quantities Demanded at $1.50 From the provided demand schedule, find the quantity demanded for customers B and C when the price is $1.50.
- For customer B at $1.50: 12 quarts/week
- For customer C at $1.50: 8 quarts/week
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Add Quantities Demanded To find the market demand, sum the quantities demanded by customers B and C.
The calculation will be:
$$ Q_{market} = Q_B + Q_C = 12 + 8 $$
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Calculate Market Demand Perform the addition:
$$ Q_{market} = 12 + 8 = 20 $$
The market demand for ice cream at the price of $1.50 is $20$ quarts/week.
More Information
At a price of $1.50, the combined demand for ice cream by customers B and C totals 20 quarts per week. This method of summing individual demands is a basic principle of market demand analysis.
Tips
- Overlooking customers: Sometimes, learners might forget to consider all relevant consumers, but in this case, we focused only on B and C as instructed.
- Misreading the table: Make sure to read the correct quantities corresponding to the specified price.
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