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
Ask a new question for Free
By Image
Drop file here or Click Here to upload
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
Related Recommendation
Consumer Surplus Calculation for Gasoline Market at $3.50 per Gallon
Find the Linear Demand Equation and Estimate Gas Demand with Price Increase
Market Demand for Soft Drinks at $1.50 and $2.00 per Gallon
Solving for Equilibrium Price and Vehicle Surplus in Supply-Demand Equations
Find the Equilibrium Price and Quantity in the Gasoline Market