Question

13

Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the table below. a. Fill in the table (gray-shaded cells) for the missing values. Individual Quantities Demanded Price per Candy Total Quantity Demanded Tex Dex Rex S8 13 20 27 4 15 19

Answer 1

Answer:

Question A)

Since Total Quantity demanded = Tex Quantity+Dex Quantity+Rex Quantity

Price	Tex	Dex	Rex	Total Quantity demanded
8	1	2	3	6
7	3	3	7	13
6	5	4	11	20
5	7	5	15	27
4	9	6	19	34

Question B)

Dex will demand the least at $5.

Rex will demand the Most at $7.

Question C)

If price changes form$7 to $6 then

Increase in demand for Tex=5-3=2

Increase in demand for Dex=4-3=1

Increase in demand for Rex=11-7=4

from above calculation it is clear that Increase in demand for Rex is the most.

Question D)

If Tex withdraw from the market then new quantity demanded is

Price	Total Quantity demanded	New Total Quantity demanded
8	6	5
7	13	10
6	20	15
5	27	20
4	34	25

From above table it is clear that for a particular price there is decrease in demand. So demand curve will shift to left.

Price $6-__ D1 15 20 Quantity

if Dex doubled his purchase

Price	Total Quantity demanded	New Total Quantity demanded
8	6	8
7	13	16
6	20	24
5	27	32
4	34	40

From above table it is clear that for a particular price there is increase in demand. So demand curve will shift to right.

Price $6--_ D1 20 Quantity

Question E)

since there is increase in demand for a particular price so there is change in demand. So there is shift in demand curve towards right.