What is the relationship between the marginal social benefit curve and the market demand curve. Explain
What will be an ideal response?
The market demand curve is also the marginal social benefit curve. The market demand curve shows the maximum price that consumers are willing to pay to buy another unit of the good. Marginal social benefit is the value of one more unit of a good, which equals the maximum price that people are willing to pay to get it. So the market demand curve is the marginal social benefit curve.
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At the broadest level, the financial system moves the economy's scarce resources from
a. the rich to the poor. b. financial institutions to business firms and government. c. households to financial institutions. d. savers to borrowers.
A decrease in the supply of nurses will the equilibrium wage and the equilibrium quantity of nursing services.
A decrease in the supply of nurses will .......... the equilibrium wage and ............ the equilibrium quantity of nursing services.