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Unformatted text preview: the quantity demanded increases and when the price of the product rises the quantity demanded will decrease. 3d. Yes the law of demand holds for the market because if all individuals follow the law of demand than the market demand will follow the law of demand and it is evident in the graph that it does. 4e. The first scenario exhibits greater Allocative efficiency. The second scenario doesnt allow for you to maximize all of what could be sold. The first scenario allows for the greatest advantages. On this assignment I worked with Scott Krauter and received help from Matt Good a member of my fraternity. I apologize for the dark blue ink my 0printer ran out of ink at the last second....
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This note was uploaded on 02/15/2012 for the course ECONS 101 taught by Professor Michalski during the Fall '08 term at Washington State University .
- Fall '08