Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Shown below are the quantities of a commodity demanded by three individuals  A, B & C at different prices in a market.
At price Rs. 10, demand of A = 60, B = 59, C = 62
At price Rs. 20, demand of A = 45, B = 49, C = 49
At price Rs.30, demand of A = 30, B = 39, C = 36
At price Rs.40, demand of A = 15, B = 29, C = 23
What will be the market demand at price of Rs. 20 and 40 respectively? (Assume market consists of only these three consumers)

Options:

139, 67

143, 67

67, 143

143, 139

Correct Answer:

143, 67

Explanation:

Market demand refers to the sum total of all the individual demand curves pertaining in the market. Demands of A, B and C at price 20 = 45+ 49+49 = 143 Demands of A, B and C at price 40 = 15+ 29+ 23 = 67