This topic contains a solution. Click here to go to the answer

Author Question: What is the relationship between the marginal social benefit curve and the market demand curve. ... (Read 107 times)

dalyningkenk

  • Hero Member
  • *****
  • Posts: 598
What is the relationship between the marginal social benefit curve and the market demand curve. Explain.
 
  What will be an ideal response?

Question 2

Kirk consumes normal goods. If Kirk's income decreases and the prices of all goods remain unchanged, in his new consumer equilibrium, his marginal utility from each good will ________ and his total utility will ________.
 
  A) increase; increase
  B) increase; decrease
  C) decrease; increase
  D) decrease; decrease



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joshraies

  • Sr. Member
  • ****
  • Posts: 351
Answer to Question 1

The market demand curve is also the marginal social benefit curve. The market demand curve shows the maximum price that consumers are willing to pay to buy another unit of the good. Marginal social benefit is the value of one more unit of a good, which equals the maximum price that people are willing to pay to get it. So the market demand curve is the marginal social benefit curve.

Answer to Question 2

B




dalyningkenk

  • Member
  • Posts: 598
Reply 2 on: Jun 29, 2018
Gracias!


bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

For a complete list of videos, visit our video library