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Question
From the following data regarding individual demand schedules of households A, B and market demand schedule, prepare the demand schedule of household C, assuming that there are only three households in the market.
| Price (₹) | Individual Demand (units) | Market demand (units) | ||
|---|---|---|---|---|
| A | B | C | ||
| 7 | 20 | 16 | – | 51 |
| 8 | 18 | 15 | – | 46 |
| 9 | 16 | 12 | – | 39 |
| 10 | 13 | 10 | – | 32 |
Numerical
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Solution
At each price, household C’s demand is the market demand minus the demands of A and B.
| Price (₹) | Household C’s demand (units) |
|---|---|
| 7 | 15 |
| 8 | 13 |
| 9 | 11 |
| 10 | 9 |
\[ D_C = D_M - (D_A + D_B) \]
\[ \begin{aligned} 51 - (20 + 16) &= 15\\ 46 - (18 + 15) &= 13\\ 39 - (16 + 12) &= 11\\ 32 - (13 + 10) &= 9 \end{aligned} \]
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