Question

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

Price per candy	Individual quantities demanded			Market demand
	Tex	Dex	Rex
$8	3	1	0
$7	8	2		12
$6		3	4	19
$5	17		6	27
$4	23	5	8

(1) Based on the individual demand information and market demand information offered, FILL the missing values in the table.

(2) Among the three buyers in the market, which buyer demands the least at a price of $5?

(3) Due to the decreased income of Tex, he has decided to withdraw from the market, which direction would the market demand curve shift?

(4) Suppose at the price of $5, the total quantity demanded decreased from 27 to 23, is this a “change in the quantity demanded” or “change in demand”? Offer your answer with brief explanation.

Answer 1

Price per candy	Individuals Quantity demanded			Market demand
$	Tex	Dex	Rex
8	3	1	0	4
7	8	2	2	12
6	12	3	4	19
5	17	4	6	27
4	23	5	8	36
Market demand is the total of individual demand
2) Dex since he demands only 4 units, whereas, Tex demands 17 units and Rex demands 6 units.
3) Left as the market demand will be lower. Income is a demand determinant.
4)Change in demand as it is a shift because the price is the same.