Question

Can I have a detailed answer to the below question

1. An individual’s demand curve is P = 10 − q. There are 10 consumers in the market and they are all identical. What is the market demand curve?

a. P =100−10Q
b. P =10−100Q
c. P =100−Q
d. P = 10 − 0.1Q
e. None of the above.

Answer 1

Answer
Option d
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The market demand curve is a horizontal summation of the individual demands; the demand is identical, so it is individual demand multiplied by the number of the consumer.
P=10-q
converting the inverse demand curve to a normal demand curve
P=10-q
q=10-P
Q=market demand =individual demand * number of consumers =q*10
=(10-P)*10=100-10P
the market demand is
Q=100-10P
Converting the demand curve to an inverse demand curve
Q=100-10P
10P=100-Q
P=10-0.1Q
the market demand curve is
P=10-0.1Q