22 market demand versus individual demand 222

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Unformatted text preview: $2. 50 Price of Quantity of Ice­cream Cone $0.00 Cones Demand 12 0.50 10 1.00 8 1.50 6 $0. 50 2.00 4 $0. 00 2.50 2 3.00 0 FIGURE 1 $2. 00 $1. 50 $1. 00 0 2 4 6 2....increases quantity of cones demanded 8 10 12 Quantity of Ice­ cream Cones 2.2.2 Market Demand versus Individual Demand 2.2.2 The market demand at each price is the sum of all the individual demands. The quantity demanded in a market is the sum of the quantities demanded by all the buyers at each price. Thus, the market demand curve is found by adding horizontally the individual demand curves. At a price of $2, Catherine demands 4 ice­cream cones, and Nicholas demands 3 ice­cream cones. The quantity demanded in the market at this price is 7 cones. Price of Ice­Cream Cone Catherine $0.00 0.50 1.00 1.50 2.00 2.50 3.00 12 10 8 6 4 2 0 Nicholas + 7 6 5 4 3 2 1 Market = 19 16 13 10 7 4 1 FIGURE 2 Catherine’s Demand rice of $3. 50 Ice­ $3. 00 cream $2. 50 Cone Market Demand Price of $3. 50 Ice­ cream $3. 00 Cone $2. 00 $1....
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