Suppose there are 3 types of consumers with demand: 𝑄𝑑 = 10 − 2𝑝

Answer 1

If there are three types of consumers with demand, we can denote them as follows:

Type 1: Q₁d = 10 - 2p
Type 2: Q₂d = 10 - 2p
Type 3: Q₃d = 10 - 2p

In this case, all three types of consumers have the same demand function, given by Qd = 10 - 2p. This means that each type of consumer will have the same quantity demanded at any given price.

This assumption implies that all three types of consumers are identical in terms of their willingness to pay for the good. They are equally sensitive to changes in price and have the same preference for the good.

Therefore, the market demand would be the sum of the individual demands of all three types of consumers:

Qd = Q₁d + Q₂d + Q₃d
Qd = (10 - 2p) + (10 - 2p) + (10 - 2p)
Qd = 30 - 6p

So, the market demand is given by Qd = 30 - 6p.