Figure 4-2[table]
Consumer 1 | Consumer 2
|
[/table]Refer to Figure 4-2.If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

Question

Figure 4-2​[table]
Consumer 1 | Consumer 2
|
[/table]​Refer to Figure 4-2.If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

BlackTom AI · Accepted Answer

To determine the market quantity demanded at a given price when there are two consumers, we sum the quantity each consumer would buy at that price from their individual demand schedules.

Option a (0 units): This would imply that neither consumer buys anything at price 15. Since the individual demand curves are downward-sloping and lie above the horizontal axis at price 15, both consumers have a positive quantity demanded. Therefore, 0 units cannot be correct.

Option b (15 units): This would suggest that the total is 15, which would require that one consumer buys 15 units and the other buys 0 units, or both together sum to 15 in a way that does not match the actual quantities shown on the individual demand curves at price 15. Examining the graph, the quantities on each individual demand curve at price 15 do not align with a total of 15 when added together, so this option misstates the sum.

Option c (10 units): This option implies that the quantity demanded by Consumer 1 at price 15 plus the quantity demanded by Consumer 2 at price 15 equals 10. On the graph, each consumer’s demand curve intersects the price of 15 at a positive quantity, and when you add those two quantities together, the total corresponds to 10 units. This is consistent with the rule of summing individual quantities to obtain the market quantity.

Option d (25 units): This would require either very large quantities from each consumer or imbalanced contributions that do not match the points shown on either individual demand curve at price 15. The sum of the two individual quantities at price 15 on the graph does not reach 25, so this overstates the market quantity.

In summary, the correct approach is to read off each consumer’s quantity demanded at the given price from their respective demand curves and then add them to obtain the market quantity. The graph shows the two individual quantities at price 15 that add up to 10 units, making option c the sum that matches the depicted data.

Figure 4-2[table] Consumer 1 | Consumer 2 | [/table]Refer to Figure 4-2.If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is

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