Suppose Julia and Zach are the only consumers of milk.Julia's demand for milk is defined as at prices below $4 and zero for prices above $4.Zach's demand for milk is defined as at prices below $5 and zero for prices above $5.If the market price for milk is $4.50,market demand is
A) Zero
B) 1.5
C) 1
D) 10

Question

Suppose Julia and Zach are the only consumers of milk.Julia's demand for milk is defined as  at prices below $4 and zero for prices above $4.Zach's demand for milk is defined as  at prices below $5 and zero for prices above $5.If the market price for milk is $4.50,market demand is
A) Zero 
B) 1.5 
C) 1 
D) 10

Quizplus · Accepted Answer

At a price of $4.50, Julia's demand for milk is 11ea8a01_e409_cfcd_8b44_dff3483b3e07_TB1639_11, which is positive. Zach's demand for milk is also positive at this price. Therefore, the market demand is the sum of Julia's and Zach's individual demands, which is 11ea8a02_6eac_2c05_6d36_6a27f6cf1cfe_TB1639_11. Thus, the answer is 1.

Suppose Julia and Zach Are the Only Consumers of Milk