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 110 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
YES! Correct, THANKS for helping me on my review

meganmoser117

  • Member
  • Posts: 303
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Many types of edible fungi are grown for the market. Many types of edible fungi are grown for the market.
Titration Curve Titration Curve
Apply deep effleurage with the thumbs between the iliac crest and the last three ribs. Keep the ... Apply deep effleurage with the thumbs between the iliac crest and the last three ribs. Keep the ...
Circular clockwise pattern. Gently lay a hand on the abdomen to establish contact. Apply effleurage ... Circular clockwise pattern. Gently lay a hand on the abdomen to establish contact. Apply effleurage ...
Please explain the different Rf values for xanthophyll’s in paper chromatography compared to ... Please explain the different Rf values for xanthophyll’s in paper chromatography compared to ...
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Video: Wound Care

For a complete list of videos, visit our video library