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September 21st, 2017, 12:35 PM   #1
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Demand function

How... just... how :/ I cannot find the answers to both of them.
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September 25th, 2017, 05:32 AM   #2
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bump..
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September 25th, 2017, 06:36 AM   #3
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Please write the problem out so I can see it.
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September 26th, 2017, 01:22 AM   #4
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Originally Posted by JeffM1 View Post
Please write the problem out so I can see it.
Q1 = 8 - P ; Q2 = 6 - 0.5P, how much is the total demand at price of 9.5, how much is the total demand at the price of 7.00?
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September 26th, 2017, 06:24 AM   #5
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This is a trick question in my opinion.

Usually, demand curves are defined to be non-negative, and prices are to be defined as positive. So

$0 < p < 8 \implies q_1(p) = 8 - p;\ \text { and } p\ge 8 \implies q_1(p) = 0.$

$0 < p < 12 \implies q_2(p) = 6 - 0.5p;\ \text { and } p\ge 12 \implies q_2(p) = 0.$

A common (though not universal) assumption in theoretical economics is that the total demand function is simply the sum of the individual demand curves.

$\text {total demand} = t(p) = q_1(p) + q_2(p) \implies$

$0 < p < 8 \implies t(p) = 14 - 1.5p;\ 8 \le p < 12 \implies t(p) = 6 - 0.5p;\ \text { and } p \ge 12 \implies t(p) = 0.$

$\therefore \ t(9) = 6 - 4.5 = 1.50.$

$t(7) = 14 - 1.5p = 14 - 10.5 = 3.50.$
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