If consumer 1 has the demand function x 1  1,000  2p and consumer 2 has the demand function x 2  500  p, then the aggregate demand function for an economy with just these two consumers would be x  1,500  3p for p  500.

Question

If consumer 1 has the demand function x 1     1,000    2p and consumer 2 has the demand function x 2     500    p, then the aggregate demand function for an economy with just these two consumers would be x    1,500    3p for p    500.

Alessandra Criscione · Accepted Answer

Final Answer : True, Explanation :  To find the aggregate demand function, we simply add up the individual demand functions:x = x 1     1,000    2p + x 2     500    pSimplifying this gives:x = 1,500    3pTherefore, the given statement is true.

If consumer 1 has the demand function x₁  1,000  2p and consumer 2 has the demand function x₂  500  p, then the aggregate demand function for an economy with just these two consumers would be x  1,500  3p for p  500.

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Related questions

If consumer 1 has the demand function x1  1,000  2p and consumer 2 has the demand function x2  500  p, then the aggregate demand function for an economy with just these two consumers would be x  1,500  3p for p  500.

Definitions

Learning Objectives

Learning Objectives

Related questions

If consumer 1 has the demand function x₁  1,000  2p and consumer 2 has the demand function x₂  500  p, then the aggregate demand function for an economy with just these two consumers would be x  1,500  3p for p  500.