At a price of $5 per cup of coffee, Kevin is willing to consume 6 cups of coffee, Joseph 8 cups of coffee, and Lisa 3 cups of coffee. At a price of $7 per cup of coffee, Kevin is willing to consume 3 cups of coffee, Joseph 4 cups of coffee, and Lisa 1 cup of coffee. Graph and carefully label the individual demand curves, and then graph the market demand curve for cups of coffee (at these two prices).

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.