Draw the market demand curve

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Problem: There are two types of consumers in the orange juice market: "health conscious" and "casual". The demand function for the health-conscious group is Qh = 15 - 3P (i.e. "group" means the total of all of the health conscious individuals in the market, and similarly for the casual type). The demand function for the casual group is Qc = 6 - 2P. Quantity of orange juice is measured in pints.

(a) Draw the market demand curve. Include the coordinates of all of the important points in your graph.

(b) Suppose that all consumers in the orange juice market must pay a price of $1 per pint. Find total (that is, market) consumer surplus for this market.

Reference no: EM132456916

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