Question

Show how to derive an individual’s demand curve from indifference curve analysis and market demand from a group of individuals’ demands.

Short answer

The market demand curve is$\mathrm{Q}=51-3\mathrm{P}$.

Step-by-step solution

Introduction

A demand curve focus on what quantity of a commodity will be bought. It may be demanded at various costs, presuming the proclivity and tastes of a customer’s income. It also includes costs of all goods as constant. The demand curve can be obtained from the price utilization curve of the indifference curve analysis; it depicts a clear association between the cost and quantity demanded.

Deriving demand curve. 

In a condition suppose, the demand curve for roses for women is,${\mathrm{Q}}^{\mathrm{F}}=24-2\mathrm{P}$

Here,

${\mathrm{Q}}^{\mathrm{F}}$is the quantity of roses demanded by female customer

$P$is the price of rose

The demand curve for roses for men is,$Q^M=27-P$

Here,

$Q^M$is the quantity of roses demanded by female customer

$P$is the price of rose

By substituting the demand functions into the equation we will get,

$\begin{array}{c}Q=Q^M+Q^F\\ =27-P+24-2P\\ =27+24-2P+P\\ Q=51-3P\end{array}$

Therefore, the market demand curve is $Q=51-3P$ .