Suppose that the market for a good is composed of 1000 identical consumers

Economics Dec 13, 2020

Suppose that the market for a good is composed of 1000 identical consumers. The market demand is given by Q = 150,000 - 25P. What is demand for an individual consumer's demand curve?

Expert Solution

Holding price P constant, each consumer demands 1/1000 of the total quantity demanded.In other words, let q denote the quantity demanded for each consumer, then q = (150,000 - 25P)/1000 = 150 - 0.025P. So the individual consumer's demand curve is q = 150 - 0.025P.

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