Abhik's and Brinda's demand curves for apples are (Abhik) and (Brinda), with . They are the only two consumers, and market supply is . Then the equilibrium quantity in the market is:
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DSE 2007 Question 25: Perfect competition
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Abhik's and Brinda's demand curves for apples are p=20-q (Abhik) and p=5-(q/2) (Brinda), with p,q≥ 0. They are the only two consumers, and market supply is p=2+Q. Then the equilibrium quantity in the market is: (A) 12 apples (B) 9 apples (C) 6 apples (D) 3 apples
Also written as: Abhik's and Brinda's demand curves for apples are p=20-q (Abhik) and p=5-(q/2) (Brinda), with p,q>= 0. They are the only two consumers, and market supply is p=2+Q. Then the equilibrium quantity in the market is:
Perfect competition has come up 115 times in 7 exams since 2006.
What this question tests
This question is on Market equilibrium and comparative statics, part of Perfect competition in Microeconomics.
Finding equilibrium from demand and supply and tracing how it moves when either curve shifts.
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