A new craft brewer, Willie the Boatman, has opened its doors in St Peters and is offering samples of its latest brew, Albos Delight on the Hill. If 18 individual consumers have the following individual demand curve for Albos Delight on the Hill: P = 27 - 2q, the market demand curve is given by:Group of answer choicesQ = 243 - 9PQ = 135 - P.Q = 135 - 5PQ = 270 - 5P.None of the above.
Question
A new craft brewer, Willie the Boatman, has opened its doors in St Peters and is offering samples of its latest brew, Albos Delight on the Hill. If 18 individual consumers have the following individual demand curve for Albos Delight on the Hill: P = 27 - 2q, the market demand curve is given by:Group of answer choicesQ = 243 - 9PQ = 135 - P.Q = 135 - 5PQ = 270 - 5P.None of the above.
Solution 1
The market demand curve is derived by horizontally summing the individual demand curves of all consumers in the market.
Given the individual demand curve: P = 27 - 2q, we can rearrange it to express quantity as a function of price: q = (27 - P) / 2.
Since there are 18 individual consumers, the market demand curve is given by: Q = 18 * q = 18 * (27 - P) / 2.
Simplifying this gives: Q = 243 - 9P.
So, the correct answer is "Q = 243 - 9P".
Solution 2
The market demand curve is derived by horizontally summing the individual demand curves. Given the individual demand curve P = 27 - 2q, we can rearrange it to express q in terms of P: q = (27 - P) / 2.
Since there are 18 consumers, the market demand curve Q is given by Q = 18 * ((27 - P) / 2) = 243 - 9P.
So, the correct answer is Q = 243 - 9P.
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