For a Good with Network Externalities, Draw a Diagram Showing

question 12

Essay

For a good with network externalities, draw a diagram showing the relation between the number of units sold and the willingness to pay of demanders.Find a price at which there are two stable and one unstable equilibrium quantities.Label these equilibria and explain why the unstable equilibrium is unstable.

---

Definitions:

British North America Act

The foundational statute passed by the British Parliament in 1867, creating the Dominion of Canada by union of several colonies.

Constitution Act

A fundamental law or group of laws outlining the system of government of a country, its institutions, and the rights of citizens.

Supremacy of Parliament

The legal principle that the laws and statutes passed by a country's parliament are supreme and cannot be overridden by any other body.

Section 33

Often referred to as the "notwithstanding clause," it allows Canadian federal or provincial governments to pass laws that temporarily override certain sections of the Charter of Rights and Freedoms.