Explain the law of demand-what is market equilibrium

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Reference no: EM13831922

1- Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift?

2- What is market equilibrium? What might keep the market from moving all the way to that equilibrium point?

3- “Price control can be more effective in the short run than the long run”. Explain. How could price controls affect a firm’s incentive to innovate? Explain.

4- What is price elasticity? Explain. What are various types of elasticity of demand? Explain with examples.

5- Suppose that a producer raises the price of a good from $8 to $15, and the quantity sold drops from 2500 to 400 units. Is the demand for the good is elastic or inelastic?

6- Define and explain perfect competition, monopoly and oligopoly. Why firms do price discrimination?

Reference no: EM13831922

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