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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At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester
If enrollment the previous semester was 3,250 students, what is the student enrollment this semester? A) 390 B) 2,860 C) 3,640 D) 4,030
What is inflation targeting?
A. Making sure inflation is reduced to zero. B. Increasing the required reserve ratio when there is inflation. C. Increasing the supply of money in the economy. D. Aiming for a particular inflation level.
Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is
A. staying at home. B. both the ice cream and the movie. C. ice cream at Dairy Queen. D. the movie.
The agreement between the U.S., the Dominican Republic and five small Central American countries that will eventually eliminate tariffs among all seven nations is called
A. NAFTA. B. CAFTA. C. Mercosur. D. GATT.