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 59 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
Thanks for the timely response, appreciate it

JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Structure of cholesterol and steroid hormones derived from cholesterol Structure of cholesterol and steroid hormones derived from cholesterol
The titration curve of phosphoric acid (H3PO4), a common buffer in biological sy The titration curve of phosphoric acid (H3PO4), a common buffer in biological sy
Two-handed kneading on the upper leg. Apply kneading to medial, posterior, and lateral muscles of ... Two-handed kneading on the upper leg. Apply kneading to medial, posterior, and lateral muscles of ...
Effleurage over sternum. Apply with the palm of the hand between breast tissue. Omit this technique ... Effleurage over sternum. Apply with the palm of the hand between breast tissue. Omit this technique ...
Undrape top leg and apply warming effleurage to lateral leg, hip, and foot in distal to proximal ... Undrape top leg and apply warming effleurage to lateral leg, hip, and foot in distal to proximal ...
A model of the splicing mechanism for removal of an intron from nuclear-derived pre-mRNA A model of the splicing mechanism for removal of an intron from nuclear-derived pre-mRNA
Video: Structures that affect circulation - arterioles and vasomotor responses

For a complete list of videos, visit our video library