Question

The demand curve for a truckload of firewood for college students in a small town is Qc = 500−p. It is sometimes convenient to rewrite a demand curve equation with price on the left hand side. We refer to such a relationship as the inverse demand curve. ​ Therefore, the inverse demand curve for college students is p=500−Qc. The demand curve for other town residents is Qr=500−2p. What is the inverse demand curve for other town​ residents? The inverse demand curve for other town residents is p=250−0.5Qr. At a price of $300​, will any firewood be sold to college​ students? College students will demand 200 units of firewood. What about other town​ residents? Other town residents will demand 0 units of firewood. At what price is the quantity demanded by other town residents​ zero? The quantity demanded by other residents is zero when price is ​$ 250. This is a 5 step question. The answers I provided above are correct. I'm having issues drawing market demand curve for firewood. The last question in the this problem states:

Using the multipoint curved line drawing tool​, show the market demand curve for firewood. Label this demand curve ​' Upper D Superscript Market DMarket​.'

Answer 1

The market demand curve is found as follows:

Market demand = Qr + Qc

=( 500 - 2P) + (500 - P)

  Market demand   = 1000 - 3P for  

which gives the total demand at each level of pric

In the above diagram, the red line is the market demand curve which is found by adding the individual demand curves of both the towns horizontally. The market demand curve tilts at price = $250 becuase only the college students buy firewood between price $250 and $500.