How is the market demand schedule derived from individual demand schedules? How does the market demand curve differ from an individual demand curve?
What will be an ideal response?
We would derive the market demand schedule by summing the individual demands at every possible price. So, for example, if Consumer 1 would buy 6 units of a good when the price is $5 and Consumer 2 would buy 4 units, then the market demand at $5 is 10 units.
The market demand curve is the sum of the individual demand curves of all the potential buyers. The market demand curve plots the relationship between the total quantity demanded and the market price, holding all else equal.
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The above table gives information for the nation of East Hampton
a. Find aggregate planned expenditure for each level of real GDP. b. What is the MPC? c. What is the equilibrium level of real GDP?
Cost-benefit analysis is the public sector counterpart to ____ used in private, profit-oriented firms
a. ratio analysis b. break-even analysis c. capital budgeting techniques d. economic forecasting e. none of the above