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(Solved): The blue curve on the following graph represents the demand curve facing a firm that can set its ow ...
The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in the white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool
On the preceding graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 8 , , or 40 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results.
Expert Answer
The market demand for a commodity refers to the summation of all demands by individual households or consumers in the economy. An increase in the real income or number of consumers generally leads to an increase in market demand for a commodity.The market supply for any commodity refers to the total amount of that commodity that the individual producers are willing and able to supply at a given price and a given period. The total amount supplied can be influenced by the number of producers present and acting in the supply process.