What are the two ways demand curves can be interpreted?
What will be an ideal response?
Demand curves can be used to find either:
1 ) the quantity demanded at a given price. In this view, the curve is a demand curve;
2 ) the maximum price people are willing to pay for a given quantity. In this view the curve is a marginal benefit curve.
You might also like to view...
Comparative advantage is related most closely to which of the following?
a. output per hour b. opportunity cost c. efficiency d. bargaining strength in international trade
Interest paid by businesses is
A. included in both GDP and national income. B. not counted in GDP because it is not assumed to flow from the production of goods and services. C. counted in national income, but not in GDP. D. not counted in GDP but is counted in GNP because it is paid by U.S. businesses.