Annie's demand for latte's is given by the individual demand function: qda= 48-8P. Annie's choke price is $6.Britta's demand for latte's is given by the individual demand function: qdb= 12-2P. Britta's choke price is also $6.Jeff's demand for latte's is given by the individual demand function: qdj = 30-10P. Jeff's choke price is only $3.Find the total demand function for prices greater than $3 but less than or equal to $6.QD = Blank 1 Question 4[select: , 6, 36, 48, 12, 60] Blank 2 Question 4[select: , -6, -0.1, -10] P

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BlackTom AI · Accepted Answer

To find the total demand for prices between 3 and 6, I will sum the individual demands for Annie, Britta, and Jeff, while noting the choke prices.
First, examine each person’s demand at P in (3, 6]. Annie has qA = 48 − 8P. At P = 6, qA = 0, and for P > 6 it would be negative, which is not meaningful, so within the interval (3, 6], Annie contributes a positive quantity that decreases linearly with price.
Britta has qB = 12 − 2P. At P = 6, qB = 0, and for P > 6 it would be negative, so within the interval (3, 6], Britta also contributes a positive quantity that falls with price.
Jeff has qJ = 30 − 10P, but his choke price is 3. This means his quantity demanded is effectively zero for P > 3, since the model would otherwise give a negative quantity which is not meaningful. So in the price range (3, 6], Jeff does not buy any latte.
Therefore, the total quantity demanded in this price range is QD = qA + qB + qJ = (48 − 8P) + (12 − 2P) + 0.
Now combine like terms: QD = 60 − 10P.
Looking at the required form QD = Blank1 − Blank2 × P, you identify Blank1 as 60 and Blank2 as 10. Note how the listed options present possible values for Blank1 and Blank2; the correct pairing to match 60 − 10P is 60 for Blank1 and −10 for Blank2 when read as the coefficient that multiplies P in the subtraction.
In this interval, the other options do not fit the derived expression: 60 − 6P would undervalue the price sensitivity, −0.1P would be far too small in slope, and −10 as Blank2 aligns with the correct slope when combined with the 60 intercept.
Thus, the total demand function over 3 < P ≤ 6 is QD = 60 − 10P, and the chosen values are Blank1 = 60 and Blank2 = −10.

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