Answer to Question #167707 in Microeconomics for Felix Brobbey

Question

1) 20 women went to the market to buy a bag of rice which cost 50cedis per bag. 10 women had 60cedis each and 5 women had 40cedis each and the rest of the women had 25cedis each. Calculate :

i) The level of demand

ii) Want or desire want

Answer 1

Solution:

i). The level of demand:

a bag of rice = 50 cedis

Total amount the 20 women have =$(10\times 60) +(5\times 40)+(5\times 25)$

= 600 + 200 +125 = 925 cedis

The level of demand = $\frac{Total\; amount}{price \;of \;a \;bag\; of\; rice}$

=$\frac{925}{50}$ = 18.5 bags

The level of demand = 19 bags of rice

 

ii). Want or desire want:

A want is a desire to have something. All 20 women want rice but only 10 women can afford it.

The want = The difference required to buy the rice

 = $(5\times 10) +(5\times 25)$ = 50 + 125 = 175 cedis

Want or desire want = 175 cedis