Suppose spencer and kate are the only two demanders of lemonade. each month, spencer buys six glasses of lemonade when the price is $1.00 per glass, and he buys four glasses when the price is $1.50 per glass. each month, kate buys four glasses of lemonade when the price is $1.00 per glass, and she buys two glasses when the price is $1.50 per glass. which of the following points is on the market demand curve?
a. (quantity demanded = 2, price = $1.50)
b. (quantity demanded = 4, price = $2.50)
c. (quantity demanded = 10, price = $1.00)
d. (quantity demanded = 16, price = $2.50)

The correct answer is option C.

Explanation:

Spencer and Kate are only two consumers of lemonade.

Spencer buys six glasses of lemonade when the price is $1/glass.

When the price is $1.5, he buys four glasses.

Kate buys four glasses when the price is $1.

She buys two glasses when the price is $1.5.

A market demand curve is the sum of individual demand curves.

So at price level $1, the market demand will be

= 6 glasses + 4 glasses

= 10 glasses

At price $1.5 , the market demand will be

= 4 glasses + 2 glasses

= 6 glasses

So the points on the market demand curve will be, quantity demanded = 10, price = $1 and quantity demanded = 6 and price = $1.5