2) Suppose that there are two types of consumers. "Type 1" consists of 10 identical consumers who each have the following individual demand curve: P=40-2Q. "Type 2" consists of 50 identical consumers who each have the following individual demand curve: P = 73-5Qaz. a. Compute the market demand curve, where P is a function of Q₁, where Q=Qa+ Qa. b. Suppose the supply of this good is perfectly inelastic at a quantity of Q₁ = 30. Compute the market equilibrium price of this good.

2) Suppose that there are two types of consumers. "Type 1" consists of 10 identical consumers who each have the following individual demand curve: P=40-2Q. "Type 2" consists of 50 identical consumers who each have the following individual demand curve: P = 73-5Qaz. a. Compute the market demand curve, where P is a function of Q₁, where Q=Qa+ Qa. b. Suppose the supply of this good is perfectly inelastic at a quantity of Q₁ = 30. Compute the market equilibrium price of this good.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 13PA

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