Answer to Question #288949 in Macroeconomics for Dhiru

Question

 Suppose individual demand schedules for A, B and C are given as follows:Find:(a) market demand schedule(b) market demand curve;(c) elasticity when price falls form $15 to $10; and(d) elasticity when price rises from $10 to $5.

Answer 1

(a) a market demand schedule is a tabulation of the quantity of a good that all consumers in a market will purchase at a given price. 

(b) The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points. 

(c) To find elasticity when price falls form $15 to $10; and (d) elasticity when price rises from $10 to $5 we need to know the quantities demanded at these prices.