Question

(a) Derive the demand function of each individual for commodity Q, with the values a = 100,
b1 = 1, b2 = 2, and b3 = 2. Which of the consumers experience diminishing marginal utilities
from the consumption of commodity Q?

Answer 1

$$Q_1=100-p$$

$$Q_2=100-2p$$

$$Q_3=100-2p$$

The second and third consumers experience a decrease in marginal utility.