ECN100_PS4_sp08

ECN100_PS4_sp08 - This problem set is not collected Problem...

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This problem set is not collected . Problem Set 4 ECN100 Instructor: Masako Miyanishi 1. In Gas Pump, South Dakota, there are two kinds of consumers, Buick owners and Dodge owners. Every Buick owner has a demand function for gasoline D B (p)=20-5p for p=<4 and D B (p)=0 for p>4. Every Dodge owner has a demand function D D (p)=15-3p for p=<5 and D D (p)=0 for p>5. (Quantities are measured in gallons per week and price is measured in dollars.) Suppose that Gas Pump has 150 consumers; 100 Buick owners, and 50 Dodge owners. a. If the price is \$3, what is the total amount demanded by each individual Buick owner? And by each individual Dodge owner? b. What is total amount demanded by all Buick owners? What is total amount demanded by all Dodge owners? c. What is the total amount demanded by all consumers in Gas Pump at a price of 3? d. Draw the demand curve representing the total demand by Buick owners. Draw the demand curve representing total demand by Dodge owners? Draw the market demand curve for the whole town. e. At what price, does the market demand curve have a kink?

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This note was uploaded on 06/16/2008 for the course ECON 101 taught by Professor Mikson during the Spring '08 term at Aarhus Universitet.

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ECN100_PS4_sp08 - This problem set is not collected Problem...

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