Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market…
The following solution is suggested to handle the subject “Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market…“. Let’s keep an eye on the content below!
Question “Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market…”
Answer
a) price per candy Tex Dex Rex total demand
8 4 3 3 10
7 6 4 7 17
6 8 5 11 24
5 10 6 15 31
4 12 7 19 38
b) DEX requires units at a price that is as low as 5.
c) REX requires 7 units, which is the highest at price 7.
c) REX’s quantity demanded increased most when the price drops from 7 to 6.
d) To the left. If individual demand drops, market demand shifts to the left.
When Dex doubles his purchase, market demand shifts to the right
e) Change in demand.
Change in demand refers the change in demand caused by factors other than price. Because price is constant, any change can be attributed to other factors.
Conclusion
Above is the solution for “Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market…“. We hope that you find a good answer and gain the knowledge about this topic of business.