Question

What is the equilibrium demand schedule? Why do we need to use two demand curves to...

What is the equilibrium demand schedule?

Why do we need to use two demand curves to represent consumers suffering an addicition?

Please explain.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The equilibrium demand schedule shows the equilibrium quantities at the corresponding to various equiibrium price levels. The different equilibrium situations may arise due to change in any factor of the demand.

The two demand curves will depict different elasticities of demand. If the consumer is too much habitual the demand curve will be inelastic showing that the percentage change in quantity demanded is less than the percentage change in the price of the good. While if the consumer is not much habituated and has other alternatives of that good, his demand curve will be elastic. For example youth smoking is considered more elastic than adult smoking.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the following: Why do demand curves slope downward? Give two reasons (10) Why do supply...
Explain the following: Why do demand curves slope downward? Give two reasons (10) Why do supply curves slope upward? (5) How is opportunity cost significant to either or both a and b?
3 The supply and demand curves for labor can shift. Use at least two different examples...
3 The supply and demand curves for labor can shift. Use at least two different examples of positive and negative shifts of the demand and supply curves and explain why these shifts occur. (20 points ) . please provide graphs to explain the answer.
Why do we need money, or demand money?
Why do we need money, or demand money?
The supply and demand curves for labor can shift. Use at least two different examples of...
The supply and demand curves for labor can shift. Use at least two different examples of positive and negative shifts of the demand and supply curves and explain why these shifts occur.
What is a corrective tax? Why do we need them? What are the results of a...
What is a corrective tax? Why do we need them? What are the results of a corrective tax? (Please explain your answer by drawing a graph)
The world consists of two countries: Home and Foreign. We observe supply and demand curves in...
The world consists of two countries: Home and Foreign. We observe supply and demand curves in both countries: D= 50?25P and S=25P in Home D* = 200?25P* and S* = 25P?50 in Foreign a) Derive MD (import demand) and XS (export supply) curves. b) Graph MD and XS. Find the world equilibrium (price and quantity) under free trade. c) Suppose that importer imposes a tariff t = 2. Find the new prices in Home and Foreign. How will the volume...
Explain why we use the concept of Hardy-Weinberg Equilibrium if populations are never stable. What do...
Explain why we use the concept of Hardy-Weinberg Equilibrium if populations are never stable. What do the mathematical results tell us if the allele frequencies do not match our predictions? (In other words, if you have extra spotted fish in a generation, what has happened?)
what is the process of synthesis soap ? why do we need to use sodium hydroxide?...
what is the process of synthesis soap ? why do we need to use sodium hydroxide? and what are the diagnostic peaks of soap that can be found in IR?
What is the G-factor in the strain gage, and why do we need to use materials...
What is the G-factor in the strain gage, and why do we need to use materials with a high G-factors in strain gages used for medical purposes.
4. Why do we need to use story-telling, how, and why is it important?
4. Why do we need to use story-telling, how, and why is it important?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT