Question 22
Theory of DemandUse the following information to answer this question. X, Y and Z are the only three consumers of a commodity. Their respective demand schedules for the commodity are as given below:
X: Price (₦) | Quantity (Units)
0 | 20
2 | 15
5 | 10
10 | 0
Y: Price (₦) | Quantity (Units)
0 | 15
2 | 10
5 | 5
10 | 2
Z: Price (₦) | Quantity (Units)
0 | 40
2 | 30
5 | 15
10 | 5
What is market demand for the commodity when price is ₦5?
- A.65 units
- B.40 units
- C.30 units
- D.20 units
Show the answer and explanation
Answer: C (30 units)
Explanation
Market demand is the sum of individual demands: at ₦5, 10 + 5 + 15 = 30 units.