Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically?
What will be an ideal response?
The law of demand states that there is an inverse relationship between the price and the quantity demanded. The law of supply demands that there is a direct relationship between the price and the quantity supplied. The demand curve is downward sloping while the supply curve is upward sloping.?
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There is a deadweight loss if a natural monopoly is regulated to use
A) marginal cost pricing and if it is regulated to use average cost pricing. B) average cost pricing and if it is allowed to be unregulated and maximize its profit. C) marginal cost pricing and if it is allowed to be unregulated and maximize its profit. D) None of the above answers is correct.
Most trade between Mexico and the United States is intrafirm
Indicate whether the statement is true or false