This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how the market demand curve can be derived. Does the law of demand apply to the market ... (Read 98 times)

@Brianna17

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
Explain how the market demand curve can be derived. Does the law of demand apply to the market demand curve?
 
  What will be an ideal response?

Question 2

What is perfect price discrimination? Is perfect price discrimination efficient? Why or why not?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

GCabra

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

The market demand curve for a good can be found by summing the quantities demanded by all of the households buying in the market for that good. Since all individuals' demand curves are downward sloping (due to the law of demand), the market demand curve will also be downward sloping. Therefore, the law of demand does apply to the market demand curve as well.

Answer to Question 2

Perfect price discrimination occurs if a firm is able to sell each unit of output for the highest price anyone is willing to pay for it. With perfect price discrimination, output increases to the point at which price, and hence marginal benefit, equals marginal cost. So perfect price discrimination achieves efficiency.


@Brianna17

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
:D TYSM

DylanD1323

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Poliovirus (derived from PDB ID 2PLV) Poliovirus (derived from PDB ID 2PLV)
Standing at the head of the table, apply effleurage to upper trapezius from neck to shoulder using a ... Standing at the head of the table, apply effleurage to upper trapezius from neck to shoulder using a ...
Apply lubricant to the foot and ankle, plantar and dorsal surfaces, and to each toe separately. Apply lubricant to the foot and ankle, plantar and dorsal surfaces, and to each toe separately.
Apply superficial friction with the towel to warm and dry the area. Apply superficial friction with the towel to warm and dry the area.
Apply knee to chest stretch for posterior hip and leg muscles. Facing the table directly, place one ... Apply knee to chest stretch for posterior hip and leg muscles. Facing the table directly, place one ...
Please fully explain the answer with steps Please fully explain the answer with steps
Video: Interpreting a cladogram Animation

For a complete list of videos, visit our video library