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Such situation would only be possible if every consumer in the economy would have exactly identical needs and preferences. Such model can be used in highly aggregated theoretical model, but it is not realistic representation of demand.

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What happens if demand curve interacts with the supply curve?

Then demand and supply are equal.


Why is average revenue curve equal to the demand curve?

In normal demand curve, AR is equal to price and so it falls as output increases since the price has to be lowered in order to sell more products. based by: Jocelyn Blink, Ian Dorton, Economics Course companion, Oxford IB


Is the price elasticity constant along the demand curve?

Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.


How can one calculate marginal revenue from a demand curve?

To calculate marginal revenue from a demand curve, you can find the slope of the demand curve at a specific quantity using calculus or by taking the first derivative of the demand function. The marginal revenue is then equal to the price at that quantity minus the slope of the demand curve multiplied by the quantity.


What is the relationship between marginal utility curve and demand curve?

both are equal and complement to each other

Related Questions

What happens if demand curve interacts with the supply curve?

Then demand and supply are equal.


Why is average revenue curve equal to the demand curve?

In normal demand curve, AR is equal to price and so it falls as output increases since the price has to be lowered in order to sell more products. based by: Jocelyn Blink, Ian Dorton, Economics Course companion, Oxford IB


Is the price elasticity constant along the demand curve?

Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.


How can one calculate marginal revenue from a demand curve?

To calculate marginal revenue from a demand curve, you can find the slope of the demand curve at a specific quantity using calculus or by taking the first derivative of the demand function. The marginal revenue is then equal to the price at that quantity minus the slope of the demand curve multiplied by the quantity.


What is the relationship between marginal utility curve and demand curve?

both are equal and complement to each other


What happens to price if the demand increases?

The price rise.With respect to classical economics (all things being equal) there are two possible situations which represent price increases:An increase in price due to supply side factors (generally the cost of inputs or the cost of labour) the supply curve increases (moves upwards) and intersects with the demand curve at a higher price. In this case the demand curve is not affected. Only the supply curve has risen.An increase in demand (due to changing market pressures). In this case the demand curve has increased (risen) and now intersect the supply curve at a higher position. In this case the demand curve is higher than it was previously.


What does a perfectly elastic demand curve mean?

it is the graphic representation of the changes in demand due to the availability of equal important substitude.


How can a company have a downward demand curve but still have marginal revenue equal price?

If the Demand Curve is separate from the MR=P curve, the company can not be of Perfect Competition. It can exist in any other market structure: Monopolistic Competition, Monopoly, or Imperfect Competition. In each of these three structures, the Demand Curve will always fall twice as fast as the MP=P=AR Curve. To answer your question in these terms, the company can have a downward sloping Demand Curve separate from the MR=P curve if it is not in the PC Market Structure.


What is the shape of demand curve in monopoly?

The demand curve is downwards sloping with price on the vertical axis and quantity demanded on the horizontal axis. This is because as products get more expensive the quantity demanded decreases, other things being equal. Put another way, there is a negative correlation between price and quantity demanded.


What is the Difference between a demand curve and a budget line?

demand curve shows quantities that the consumer is willing and able to buy at various prices in a given period of time,other things being equal. Whereas, a budget line is a graph showing all the possible combinations of two goods that can be purchased at given prices and for a given budget.


When is the LM curve relatively steep?

If money demand has low sensitivity to change in interest rate,the interest rate would have to rise by a large amount to reduce the demand for real balance back to the fixed leveli.e the level at which demand for money is equal to supply of money.Accordingly,the LM curve would be quite steep


What is the difference between demand function and demand curve?

demand curve shows quantities that the consumer is willing and able to buy at various prices in a given period of time,other things being equal. Whereas, a budget line is a graph showing all the possible combinations of two goods that can be purchased at given prices and for a given budget.