markets1a - 1 Additional Problem 1: Market Analysis (Answer...

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1 Additional Problem 1 : Market Analysis (Answer Key) Use the information in the table to answer the following questions. Tom’s Demand Dick’s Demand Harry’s Demand Beer Price (per 6 pack) Quantity of Beer Demanded Beer Price (per 6 pack) Quantity of Beer Demanded Beer Price (per 6 pack) Quantity of Beer Demanded $10 0 $10 1 $10 0 9 0 9 3 9 1 8 0 8 5 8 5 7 1 7 7 7 8 6 2 6 9 6 11 5 4 5 12 5 12 4 6 4 15 4 15 3 10 3 18 3 18 2 15 2 21 2 20 1 21 1 24 1 23 0 25 0 25 0 25 1. Draw Tom, Dick, and Harry’s individual demand curves for beer. Use graph paper to aid your construction. Tom’s Demand Curve Dick’s Demand Curve P P 10 10 8 8 6 6 4 4 2 2 D D 0 5 10 15 20 25 30 Q 0 5 10 15 20 25 30 Q
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2 Harry’s Demand Curve P 10 8 6 4 2 D 0 5 10 15 20 25 30 Q 2. Draw the market demand curve for beer assuming that Tom, Dick, and Harry are the only consumers in the market. Market Demand Curve P 10 8 6 4 2 D T = Market Demand 0 10 20 30 40 50 60 70 80 Q 3. Assume that demands for beer by Tom and Dick double, and is cut in half for Harry. Redraw each individual’s demand curve and then redraw the market demand curve. P Q T $10 1 9 4 8 10 7 16 6 22 5 28 4 36 3 46 2 56 1 68 0 75
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3 Tom’s Demands P 10 8 6 4 D 2 D 0 5 10 15 20 25 30 Q Dick’s Demands P 10 8 6 4 D 2 D 0 5 10 15 20 25 30 Q Tom’s New D = D P Q $10 0 9 0 8 0 7 2 6 4 5 8 4 12 3 20 2 30 1 42 0 50 Dick’s New D = D P Q $10 2 9 6 8 10 7 14 6 18 5 24 4 30 3 36 2 42 1 48 0 50
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markets1a - 1 Additional Problem 1: Market Analysis (Answer...

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