If Castor's Demand Curve Is Described by Q = 40

question 71

True/False

If Castor's demand curve is described by q = 40 - p and Pollux's demand curve is given by q = 60 - 2p, then each of their demand curves will pass through the point q = 20, p = 20.Therefore if they are the only two consumers in a market, the market demand curve will also pass through q = 20, p = 20.

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Definitions:

Negatively Sloped

A graphical representation showing a decrease in one variable as another variable increases, often used in the context of demand curves.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, reflecting extra benefit.

Complements In Consumption

Goods that are often used together, where the increase in demand for one leads to an increase in demand for the other.