5. Suppose the quantity of good X demanded by individual 1 is given by

X₁ = 10-2Px +0.011₁ +0.4Py

and the quantity of X demanded by individual 2 is

X2=5 - Px +0.021₂ +0.2Py

a) What is the market demand function for total X (= X₁+X₂) as a function

of Px, I1, I2, and Py.

b) Graph the two individual demand curves (with X on the horizontal axis,

Px on the vertical axis) for the case I₁ = 1000, I₂ = 1000, and Py = 10.

c) Using these individual demand curves, construct the market demand curve

for total X. What is the algebraic equation for this curve?

2