Question 2 10 pts Suppose the demand for clean air is given by: Q=5-P Where Q is the reduction in air pollution. If there are ten individuals in a community, which of the following graphs shows the market for clean air?
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This is the demand curve for a single individual. Since there are 10 individuals, the market demand is 10 times the individual demand. Therefore, the market demand is $Q_M = 10(5 - P) = 50 - 10P$. We can rewrite this as $P = 5 - 0.1Q_M$. Show more…
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