Answer :
Sure! Let's work through the solution step-by-step. This question asks us to determine the change in market quantity demanded when the price of cashews drops from [tex]$4 to $[/tex]2.
1. Determine the Initial Market Quantity Demanded at [tex]$4:
- Jordy demands 5 lbs of cashews.
- Amy demands 9 lbs of cashews.
- The rest of the market demands 128 lbs of cashews.
To find the total market quantity demanded at this price, we add these values together:
\[
\text{Initial Market Demand} = 5 \, (\text{Jordy}) + 9 \, (\text{Amy}) + 128 \, (\text{Rest of Market}) = 142 \, \text{lbs}
\]
2. Determine the Final Market Quantity Demanded at $[/tex]2:
- Jordy demands 8 lbs of cashews.
- Amy demands 14 lbs of cashews.
- The rest of the market demands 156 lbs of cashews.
Again, add these values to find the total market quantity demanded:
[tex]\[
\text{Final Market Demand} = 8 \, (\text{Jordy}) + 14 \, (\text{Amy}) + 156 \, (\text{Rest of Market}) = 178 \, \text{lbs}
\][/tex]
3. Calculate the Change in Market Quantity Demanded:
The change is the difference between the final and initial market demand:
[tex]\[
\text{Change in Demand} = 178 \, \text{lbs (Final Demand)} - 142 \, \text{lbs (Initial Demand)} = 36 \, \text{lbs}
\][/tex]
Therefore, if the price of cashews falls from [tex]$4 to $[/tex]2, the market quantity demanded would increase by 36 lbs.
1. Determine the Initial Market Quantity Demanded at [tex]$4:
- Jordy demands 5 lbs of cashews.
- Amy demands 9 lbs of cashews.
- The rest of the market demands 128 lbs of cashews.
To find the total market quantity demanded at this price, we add these values together:
\[
\text{Initial Market Demand} = 5 \, (\text{Jordy}) + 9 \, (\text{Amy}) + 128 \, (\text{Rest of Market}) = 142 \, \text{lbs}
\]
2. Determine the Final Market Quantity Demanded at $[/tex]2:
- Jordy demands 8 lbs of cashews.
- Amy demands 14 lbs of cashews.
- The rest of the market demands 156 lbs of cashews.
Again, add these values to find the total market quantity demanded:
[tex]\[
\text{Final Market Demand} = 8 \, (\text{Jordy}) + 14 \, (\text{Amy}) + 156 \, (\text{Rest of Market}) = 178 \, \text{lbs}
\][/tex]
3. Calculate the Change in Market Quantity Demanded:
The change is the difference between the final and initial market demand:
[tex]\[
\text{Change in Demand} = 178 \, \text{lbs (Final Demand)} - 142 \, \text{lbs (Initial Demand)} = 36 \, \text{lbs}
\][/tex]
Therefore, if the price of cashews falls from [tex]$4 to $[/tex]2, the market quantity demanded would increase by 36 lbs.
