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With perfect (first-degree) price discrimination there is:
no deadweight loss
no producer surplus
one single price
an increase in consumer surplus
If the firm is able to practice first degree (or perfect) price discrimination. So the profit is equal to the sum of consumer surplus and producer surplus. The marginal consumer...
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why is the following true?
If an increase in the supply of good A decreases the demand for good B, then good A and good b are substitutes.
Yes, since increase in the supply of good A means decline of its price. This means that good A is more attractive than good B. Demand for good B falls....
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Using appropriate tables and diagrams,distinguish clearly between demand, individual demand schedule and demand curve, and market demand schedule and market demand curve
Demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given period of time.Individual demand schedule is a set of...
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over following options that they hope will get rid of the surplus while keeping the price floor - restricting supply, decreasing demand or purchasing the surplus at the floor price
Decreasing demandWhen the demand curve shifts to the left, producer surplus decreases.Purchasing the surplus at the floor priceIf a surplus exists, price must fall in order to stimulate additional quantity...
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Why might we prefer to use cyclically adjusted surplus and structural surplus terms for full-employment budget surplus
When pursuing a surplus policy aimed at achieving full employment, the question arises of assessing its effectiveness. But this problem is quite complex due to the fact that not every...
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Given market equilibrium of demand and supply of sugar, what happens to the level of equilibrium price and quantity if market demand increases by 50% while its supply increases by 40%?
Equilibrium price and Equilibrium quantity will increase. If market demand increases by 50% while supply increases by 40% it means that there would be shortage of product. Demand is higher...
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Using demand and supply analysis, explain the effect on the equilibrium price and quantity of a good or service if the number of buyers in the market for this good or service increases
When the number of buyers in the market for an item or service grows, so does demand, and as a result, both the equilibrium price and quantity of the good...
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Given market demand Qd=50-p and market supply P=Qs+5
Find the market equilibrium price and quality
If market supply is P = Qs + 5, then: Qs = P - 5At market equilibrium: Qd = Qs 50 - P = P - 5 50 + 5 = P...
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____ is the market price at which market demand of a product is equal to its market supply
The market equilibrium price is the market price at which the market demand for a product is equal to its market supply.
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Demand Review: fill in the <i>blank</i> 3) Demand Curve - graph showing the ______ ______ at each price. 4) Law of Demand - quantity demand of product varies ( intensely/ directly) with price.
3) quantity demanded 4) directly
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