# answer questions 1.1-1.4. AaBbCcDd AaBbCcDd AaBbC( AaBbCcC Aa B Lit 1 Normal G’ Replace 1 No Spac… Heading 1 Heading 2 Title Create and Sh Select Adobe PD Paragraph Styles

answer questions 1.1-1.4. AaBbCcDd AaBbCcDd AaBbC( AaBbCcC Aa B

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1) The table shows the marginal value (MV) schedule for person A. The marginal values are

measured in dollars. Assume that the buyer will buy if the price is larger and equals the MV.

Quantity of X

MV of X

20

2

18

3

16

14

12

10

8

6

10

The table below is a marginal value schedule for person B and person C.

B’s Marginal Value of X

C’s Marginal Value of X

Quantity of X

MV of X

Quantity of X

MY of X

12

8

10

6

8

3

4

2

To

1.1) Assume now that there are three people (A, B, and C) in the market for product X, as shown

in the previous two tables. Draw a graph that shows each individual’s demand curves and the

market demand curve. Be sure to label each axis and each of the respective individual demand

curves.

1.2) In our market for X, consisting of A, B and C, assume the price of X is 6Y

a) How many units of X will be sold in total?

b) How many units will A purchase?

c) How many units will B purchase?

1.3) Given the number of units of X that A, B, and C purchased in the previous question,

a) is the total value to A of all the units of X he purchased?

b) is the total value to B of all the units of X he purchased?

c) is the total value to C of all the units of X he purchased?

d) is the total value to A, B and C of all of the units they purchased?

1.4) would happen to the total value of the units of X purchased by A, B, and C in the

previous questions, if we arbitrarily took one unit of X from A and gave it to B? In answering

this question, tell by how much the total value changes.

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