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Ni Knights Inc. has market research that shows the average gentleman’s demand for shrubberies is qM...

Ni Knights Inc. has market research that shows the average gentleman’s demand for shrubberies is qM = 55 - 2p while the average gentlewoman’s demand for shrubberies is qW = 45 - 6p . The market consists of 100 gentlemen and 100 gentlewomen.

how many total shrubberies will Ni Knights sell if the price is $5?
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Answer #1

qM = 55 - 2p (Demand by a gentleman)

As there are 100 gentlemen. So total demand by gentlemen together:

QM= 100qM

QM= 5500-200p

As p= $5

QM= 5500-200(5)= 5500-1000= 4500

So all 100 gentlemen together will demand 4500 units of shrubberies.

qW = 45 - 6p (Demand by a gentlewoman)

As there are 100 gentlewomen. So total demand by gentlewomen together:

QW= 100qW

QW= 4500-600p

As p= $5,

QW= 4500-600(5)= 4500-3000= 1500

So all 100 gentlewomen together will demand 1500 units of shrubberies.

The total shrubberies that will Ni Knights sell= QM+QW= 4500+1500= 6000

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