Answer to Question #144259 in Economics of Enterprise for muhammad ali

Question

b. Suppose that Zimal and Zawaiyar are the only consumers of perfumes in a particular market. The following table shows their annual demand schedules:

Price (Per Bottle of Perfume) Zimal’s Quantity Demanded Zawaiyar’s Quantity Demanded Market Supply
100 600 650 250
200 500 550 450
300 400 450 850
400 300 350 1050
500 200 250 1250
600 100 150 1450

Given the following information construct market demand curve and find the market equilibrium.

Answer 1

The market equilibrium will be = (Zimal's equilibrium point + Zawaiyar's equilibrium point)/2

= (220 + 230)/2

= 450/2

=225

Therefore the market equilibrium will be at 225