The Market Demand Curve for Mousetraps Is

question 41

Multiple Choice

The market demand curve for mousetraps is

• A) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer.
• B) the horizontal sum of the individual demand curves for mousetraps of all the buyers.
• C) found by summing the quantities of mousetraps demanded at each income level by each buyer.
• D) Both answers B and C are correct.
• E) Both answers A and C are correct.

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Definitions:

Product Price

The financial cost at which a good or service is sold to consumers in the market.

Deregulation

The removal of most or even all of the government regulation and laws designed to supervise an industry. Sometimes undertaken to combat regulatory capture.

Industrial Regulation

Government policies aimed at regulating the operations of industries to prevent unfair practices and ensure competition.

Net Benefits

The total benefits of some activity or policy less the total costs of that activity or policy.