Answer to Question #167763 in Microeconomics for Jeff

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

(i) Level of demand

Ten women had 60 cedis each adding up to 600, 5 women had 40 Cedis each totalling to 200 cedis and the other 5 had 25 Cedis each making it 125 Cedis.

$Total income= 600+200+125=925$

Demand is given by total income divided by cost per bag:

$925÷50=18.5$

Take 18 since bags are not sold at any quantity less than a bag.

So, level of demand is 18 bags.

(2). Want/Desire want.

There are 20 women going to buy rice. They will need 20 bags of rice in order to survive.

Thus, want is 20 bags of rice at a cost of 1000 Cedis.