Answer to Question #294244 in Microeconomics for anee

Question

*1.4 Suppose that the demand function for movies

is Q1 = 120 - p for college students and

Q2 = 60 - 0.5p for other town residents. What is

the town’s total demand function (Q = Q1 + Q2 as

a function of p)? Carefully draw a figure to illustrate

your answer.

Answer 1

Demand For movies:

- In colleges; $Q_1=120-P$

- Other town residents; $Q_2=60-0.5P$

$Total Demand=Q_1+Q_2$

$Q=120-P+60-0.5P$

$Q=180-1.5P$

Making P the subject of the formula:

$P=120-0.67Q$

The diagram below shows the total demand