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For Part (b), DRAW THE DEMAND CURVE USING EXCEL or any online
software.
Type the full detailed solution. DON'T POST PIC
Posted: Wed Jul 06, 2022 5:54 am
by answerhappygod
- For Part B Draw The Demand Curve Using Excel Or Any Online Software Type The Full Detailed Solution Don T Post Pic 1 (31.9 KiB) Viewed 13 times
Question 2 [18 points] Consider the market for a good in which there are two income groups of buyers. There are 8 buyers with income $100 and 10 buyers with income $150. All buyers have the same utility function u = 32q-q+m, where q denotes the amount of the good and m the money left after buying the good. Denote the price of the good by p. (a) [5 points] For each income group, determine the individual demand of a buyer. (b) [5 points] Find the market demand and draw the demand curve. (c) [4 points] Suppose price p = 10. Consider an individual buyer in income group $100. Determine at this price how much money is left with the buyer after buying the good. (d) [4 points] Suppose price p = 12. Consider an individual buyer in income group $150. Determine at this price how much money is left with the buyer after buying the good.