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Suppose there are 20 consumers for a goo...

Suppose there are 20 consumers for a good and they have identical demand functions : `d(p) = 10 -3p` for any price less than or equal to `(10)/(3) and d_(1)(p) 0` at any price greater than `(10)/(3)`. What is the market demand funciton ?

Text Solution

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From the given demand function, It can be seen that all the consumers demand only when price is either less than or equal to `(10)/(3)`. Hence, the market demand will be :
`d_("market")(p)=20{d(p)}`
`d_("market")(p) = 20{10-3p}`
`d_("market")(p)=200-60 p` for any price less than or equal to `(10)/(3)` and d market (p)=0 at any price greater than `(10)/(3)`.
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