Suppose there are three buyers of candy in a market Tex Dex

Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the table below.

Suppose there are three buyers of candy in a market Tex, Dex, and Rex The market demand and the individual demands of Tex, Dex, and Rex are shown in the table below a. Fill in the table (gray shaded cells) for the missing values Quantity Demanded Total Quantity Demanded Price per Candy Tex Dex Rex $8 10 14 18 14 21 28 b. Which buyer demands the most at a price of $7? Rex c. Which buyer\'s quantity demanded increases the least when the price is lowered from $7 to $6? Dex d. Which direction would the market demand curve shiftif Tex withdrew from the market? To the right What if Dex doubled his purchases at each possible price? Click to select) e. Suppose that at a price of $6, the total quantity demanded increases from 21 to 31 units. Is this a \"change in the quantity demanded\" or a \"change in demand\"? (Click to select)

Solution

Answer a : Table showing information as follows :

Answer b : Rex Should demanded more units of goods at $7 . At $7 rex demandec 6 units where as tex demanded 5 units and dex demanded 3 units.

Answer c : Dex has increased the quantity demanded only by 1 units where as tex and rex has increased 2 and 4 units respectively.

Answer d : When Tex has been removed from the market than the demand curve shift to the leftward because now the less quantity has been demanded at the same price level whereas when Dex doubled his purchases than the total quantity demanded has been increased at the same price this result in the rightward shift of the total demand curve in an analysis. As now more quantity has been demand at earlier price $7 the quantity demanded is 14 units where as now when dex increases quantity demanded than total market demand is 15 units.

Answer e : At $6 , the total quantity demanded increased from 21 to 31 units . It is due to the change in demand which means that quantity demanded has been increased due to factors other than price such as income, consumer taste and preferences in the market prone area.

Price per Candy	Tex	Dex	Rex	Total Quantity Demanded
$8	3	2	2	7
$7	5	3	6	14
$6	7	4	10	21
$5	9	5	14	28
$4	11	6	18	35