Price Quantity Demanded by Michelle Quantity Demanded by Laura Quantity Demanded by Hillary$5 5 4 11$4 6 6 13$3 7 8 15$2 8 10 17$1 9 12 19$0 10 14 21If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases bya. 2 units. b. 4 units. c. 5 units. d. 3 units.

The correct option is c. 5 units.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before the question is answered. See the attached pdf file for the complete question with the sorted data.

The explanation to the answer is now given as follows:

Note: See the attached excel file for the calculation of change in price and Quantity Demanded from the bottom.

From the table in the question and the attached excel file, whenever price changes (falls or increases) by $1, we have:

Change in Quantity Demanded by Michelle = 1

Change Quantity Demanded by Laura = 2

Change Quantity Demanded by Hillary = 2

Total change in quantity demanded = Change in Quantity Demanded by Michelle + Change Quantity Demanded by Laura + Change Quantity Demanded by Hillary = 1 + 2 + 2 = 5 units

From the above calculation therefore, if the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by the total change in quantity demanded, i.e. by 5 units.

Therefore, the correct option is c. 5 units.