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

Fig: 1