Economics

Graphing a Demand Curve

Directions:
In the table below, we have provided a list of consumers who are in the market for a new music
CD. Next to their name, we have listed the quantity of new CDs each one wants to buy. In the
last column, we have listed the maximum price each one is willing and able to pay for the new
product.

Follow the directions for each individual step and save your changes as you go. When you are
finished, be sure to submit your assignment.

Step 1: Sort the data in the table by price. (2 points)

(Highlight the entire table and use the Sort tool in your word processor.)

Maximum price
Name Quantity
willing to pay
Francois 1 13
Shonda 1 14
Renee 1 15
Alonzo 1 16
Jamal 1 17
Jacob 1 18
Karina 1 20

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 Step 2: Complete the Demand Schedule below by filling in the Price (in order from
lowest to highest) and computing the Total Quantity Demanded at each given price
(remember that people willing to pay a higher price will still purchase at a lower price, so
you will have to add together each possible buyer at each price). (5 points)

Hint: Look at your table. Is the total quantity demanded largest at the highest
price or at the lowest price?

Demand Schedule

Price Total Quantity Demanded

13 7
14 6
15 5
16 4
17 3
18 2
20 1

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Original content 2019 by Michigan Virtual, remixed by Idaho Digital Learning Alliance, and licensed under CC BY-NC-SA 4.0
 Step 3: Using the Price and Total Quantity Demanded data from the table above, graph
the demand curve on the axes provided (be sure to provide numbers on the axes for
price and quantity demanded). (10 points)

Price

Quantity demanded

Step 4: Refer to the demand curve to answer these questions. (1 point each)
1. If the price for music CDs is $15, how many CDs should be sold? 5
2. If the price for CDs is raised to $18, how many should be sold? 2
3. If the price dropped to $12 per CD, how many should be sold? 7

Original content 2019 by Michigan Virtual, remixed by Idaho Digital Learning Alliance, and licensed under CC BY-NC-SA 4.0