Exam2KEY Econ 3 - F98 Exam 2 KEY 1. Trevor, Shawn, and Bipul are all buyers of chain saws. Together the three constitute the entire chainsaw market.
Market demand is the horizontal sum of the individual market demands.
40 - .2Q B See the graph below. We are lookin for the value of P such that the absolute value of the product of those two factors is 1. Note that corresponds to the midpoint of the linear market demand curve. A copy machine requires four hours of labor and machinery in any combination. The slope of the isoquant is a little harder.