_D_1_(_p_)=_20_−_P_ forany price than less 20, and _D_1_(_p_)=_0_ atany price greater than or equal to 20. _D_2_(_p_)=_30_−_2_P_ forany price less than 15 and _D_2_(_p_)=_0_ atany price greater than or equal to 15. Find out the market demand function.

Answer

It can be seen from the given demand functionsthat Consumer 1 do not want to demand the goods for any price greater than orequal Rs.20 and consumer 2 do not want to demand the goods for any pricegreater than Rs 15.
_Hence, the market demand function will be,

Question - 2 : - Suppose there are 20 consumers for a good and they have identical demand function?

Answer - 2 : -

Answer

It can be seen from the given demand function , that 20 consumers do not want to demand the goods at any price greater

than or equal to Rs 10/3.

All them demand only at a price of less than Rs 10/3.

Question - 3 : -
Considera market where there are just two consumers and suppose their demands for thegood are given as follows:

Answer - 3 : -

p	d	d
1	9	24
2	8	20
3	7	18
4	6	16
5	5	14
6	4	12

Calculate themarket demand for the good.

Answer

Question - 4 : - What do you mean by a normal good?

Answer - 4 : - For normal good, with a raise in income,the demand of the commodity also rises and vice versa. Shortely direct relationship exists the income of a coustomer and demand of normal good.For example, a new car, new clothings.

Question - 5 : - What do you mean by an ‘inferior good’? Give some examples.

Answer - 5 : -

A good is called ‘inferior goods’ when its demand falls with a rise in the income of a consumer and vice- versa.
For example, Jowar or Bajra for a poor person.
A good is inferior in a relative terms. It means, a good is inferior or normal is determined by the income level of a consumer.
When a consumer moves to higher income, he/she may consider some goods below their income status, and treats them as inferior.

Question - 6 : - What do you mean by substitutes? Give examples of two goods which are substitutes of each other.

Answer - 6 : -

Substitute goods are those goods which can be used in place of another goods and give the same satisfaction to a consumer.

There would always exist a direct relationship between the price of substitute goods and demand for given commodity.
It means with an increase in price of substitute goods, the demand for given commodity also rises and vice-versa.
For example, Pepsi and Coke, tea and coffee are substitute to each other.

Question - 7 : -
What do you mean by complements? Give examples of two goods which are complements of each other.

Answer - 7 : -

Complementary goods are those which are useless in the absence of other goods and which are demanded jointly.

There would always exist an inverse relationship between price of complementary goods and demand for given commodity.
It means, with a rise in price of complementary goods, the demand for given commodity falls and vice-versa.
For example pen and refill, tea and sugar are complements to each other.

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