Dominick Salvatore Schaums Outline of Microeconomics, 4th edition Schaums Outline Series 2006

CHAP. 2] DEMAND, SUPPLY, AND EQUILIBRIUM: AN OVERVIEW 27
(a)
Fig. 2-13
(b)
In Fig. 2-13, d represents the individual’s hypothetical demand curve for tea before the price of coffee and the
price of lemons rose; d 00 is the individual’s demand curve for tea after only the price of coffee (a substitute
for tea) rose; d 00 is the demand curve after only the price of lemons (a complement of tea) rose; and d is
the individual’s hypothetical demand curve for tea after both the price of coffee and the price of lemons
rose. Thus, at the unchanged tea price of 20¢ per cup, the individual increases consumption of tea to 45
cups per month when the price of coffee and the price of lemons increase as indicated in Problems 2.7 and 2.8.
2.10 Table 2.13 gives three individuals’ demand schedules for commodity X. Draw these three demand
curves on the same set of axes, and derive geometrically the market demand curve for commodity X
(on the assumption that there are only these three individuals in the market for X).
Table 2.13
P x ($)
Quantity Demanded (per unit of time)
Individual 1 Individual 2 Individual 3
6 9 18 30
5 10 20 32
4 12 24 36
3 16 30 45
2 22 40 60
1 30 60 110
From Table 2.13, we get
Fig. 2-14