Juan’s demand function for ice cream cones is QdJuan = 20−5P at prices below $4, and zero at prices above $4. Emily’s demand function is QdEmily = 6 − 2P at prices below $3, and zero at prices above $3.
(a) What is the market demand function?
(b) Graph the individual and market demand curves.
The supply function of each firm that makes fudge brownies is Qs = 100P − 50 at prices above $0.50, and zero at prices below $0.50.
(a) Suppose there are 50 brownie manufacturers. What is the supply function for brownies?
(b) Suppose there are 100 brownie manufacturers. What is the supply function for brownies?
(c) Graph the market supply curves when there are 50 brownie manufacturers and when there are 100 brownie manufacturers.