Math Problem Statement

In Gas Pump, South Dakota, there are two kinds of consumers, Buick owners and Dodge owners. Every Buick owner has a demand function for gasoline DB(p)=20-5p for p</=4 and DB(p)=0 if p>4. Every Dodge owner has a demand function DD(p)=15-3p for p</=5 and DD(p)=0 for p>5. (Quantities are measured in gallons per week and price is measured in dollars.) Suppose that Gas Pump has 150 consumers, 100 Buick owners, and 50 Dodge owners. If the price is $3, what is the total amount demanded by each individual Buick Owner? And by each individual Dodge owner?

On a graph, use blue ink to draw the demand curve representing the total demand by Buick owners. Use black ink to draw the demand curve representing total demand by Dodge owners. Use red ink to draw the market demand curve for the whole town.

Solution

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Math Problem Analysis

Mathematical Concepts

Demand Functions
Linear Equations
Market Demand

Formulas

DB(p) = 20 - 5p for p ≤ 4, DB(p) = 0 for p > 4
DD(p) = 15 - 3p for p ≤ 5, DD(p) = 0 for p > 5
Market Demand: Q_market(p) = Q_B(p) + Q_D(p)

Theorems

Linear Demand Curve Theory
Market Demand Aggregation

Suitable Grade Level

Grades 10-12