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 58 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
Gracias!

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Poliovirus (derived from PDB ID 2PLV) Poliovirus (derived from PDB ID 2PLV)
The chemical structure of mescaline, derived from the peyote cactus. The chemical structure of mescaline, derived from the peyote cactus.
Drug tolerance: A shift in the dose-response curve to the right as a result of exposure to the drug. Drug tolerance: A shift in the dose-response curve to the right as a result of exposure to the drug.
Effleurage to transition to forearm-distal to proximal. Apply effleurage with moderate pressure to ... Effleurage to transition to forearm-distal to proximal. Apply effleurage with moderate pressure to ...
Stripping effleurage along cervical muscles. Using the fingertips or a knuckle to apply deep ... Stripping effleurage along cervical muscles. Using the fingertips or a knuckle to apply deep ...
Using the same hand position as in Step 3, apply circular friction along paraspinal muscles of the ... Using the same hand position as in Step 3, apply circular friction along paraspinal muscles of the ...
Video: Protein digestion - stomach & small intestine

For a complete list of videos, visit our video library