Suppose Julia and Zach are the only consumers of milk. Julia's demand for milk is defined as QdJulia = 12 - 3P at prices below $4 and zero for prices above $4. Zach's demand for milk is defined as QdZach = 10 - 2P at prices below $5 and zero for prices above $5. Market demand when price is $4 is:
A. QdMarket = 12 - 3P.
B. QdMarket = 10 - 2P.
C. QdMarket = 22 - 3P.
D. QdMarket = 22 - 5P.
D. QdMarket = 22 - 5P.
You might also like to view...
Individual price discrimination is used when
A) firms are dealing with individual consumers, such as in a line at the coffee shop. B) firms cannot easily determine consumers' reservation prices. C) firms are selling to non-local buyers. D) salespeople are in a difficult industry, such as auto sales.
In exchange of an auto insurance policy, Brenda pays AAA Insurance $1,000 annually. Which term refers to Brenda’s payment?
a. Copayment b. Premium c. Collateral d. Deductible
Suppose there are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B. Given this information, we know with certainty that
A) the growth rate will be higher in A than in B. B) the growth rate will be the same in the two countries. C) the level of consumption per worker will be higher in A. D) the level of consumption per worker will be higher in B.
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:
A. $195 B. $30 C. $215 D. $185