Consumption pattern for goods and services

Assignment Help Business Economics
Reference no: EM131918348

The law of diminishing marginal utility states that as an individual consumes more and more units of a specific good or service, the additional utility the consumer derives from the successive units keep on diminishing (declining) over time. Thus diminishing marginal utility explains a lot about consumer behavior in the market economy.

  • Select a specific consumer behavior and construct a "mini case study" that highlights the workings of marginal utility and how it affects the consumption pattern for goods and services.
  • Explain the roles total utility and marginal utility play to understand change in the consumer's behavior and preferences.
  • Does the law of diminishing marginal utility hold for all goods and services we buy and consume? What are the exceptions?

Reference no: EM131918348

Questions Cloud

Discuss concrete-operational period of cognitive development : Through the dialogue, the children should exhibit evidence of being in the concrete-operational period of cognitive development.
Determine casey cost of goods manufactured : Cost of direct materials used in production 390,000. Determine Casey's cost of goods manufactured for the month ended January 31, 2017
Changes in government spending and taxation : If the Keynesian multiplier is 7, then what would Keynesian economists recommend regarding changes in government spending and taxation?
Determine the tax consequences to walter : Shirley holds the land for one year and a day and sells it in the marketplace for $169,000. Determine the tax consequences to Walter
Consumption pattern for goods and services : Select a specific consumer behavior and construct a "mini case study" that highlights the workings of marginal utility and how it affects the consumption
Describe origin and consequences of industrial revolution : Describe in detail the origin and consequences of the industrial revolution. Why do you think the human impact of the industrial Revolution is often overlooked?
How do you define bullying : How do you define bullying? Were you: On the giving end? On the "receiving" end of the incident? Not involved in any incidents?
Analyze the legal principle of respondeat superior : he Legal Implications of Acceptance or Refusal of an Assignment - Discuss the legal and ethical implications of accepting assignments
Length of time arthur : With health insurance, each day in hospital costs Arthur $50. Without health insurance, each day in hospital costs him $200. Explain how Arthur

Reviews

Write a Review

Business Economics Questions & Answers

  Explai how monopoly on boat sales in the region

Homer's boat manufacturing has a monopoly on boat sales in the region. Homer's marginal cost of the 8th boat produced is $1,200. He produces only eight boats and can sell all eight boats for $1,500. The elasticity of demand at this price is -2. Is..

  What is the monopoly market price and quantity

In a market demand and supply equations are: What is the equilibrium price and quantity? What is the monopoly market price and quantity? What is the consumer surplus? What is producer surplus?

  Short-run production function of profit maximizer firm

The short-run production function of a profit maximizer firm is given by f(L) = 6L^2/3 , where L is the amount of labor it uses. The cost per unit of labor is w = 6 and the price per unit of output is p = 3. (i) How many units of labor will the firm ..

  Suppose the real wage remains unchanged between year

Suppose the real wage remains unchanged between year 1 and year 2 but the nominal wage increases from $20 to $24.Based on this information, we can conclude that the price level has:

  Compute the annual depletion on a cost basis

a) Compute the annual depletion on a cost basis. (a) Compute the annual depletion on a percentage basis.

  Charge different prices to different customers

Discriminating monopolists are able to charge different prices to different customers. In fact, a perfectly discriminating monopolist is able to charge.

  What is the firm marginal and average cost function

A firm operating in a purely competitive market has total cost function given by c(y) = y^ 2 + 10 for y > 0 and c(0) = 0.  What is the firm’s marginal cost function? What is the firm’s average cost function? At what quantity is the firm’s marginal co..

  Explain the factors that cause an increase in demand

List and explain the factors that cause an increase in demand (i.e., shift the demand curve to the right). If price is or is not one of these factors, explain why? List and explain the factors that cause an increase in supply ( i.e., shift the supply..

  The sale to actually use school construction

A $2 million School-bond issue being interest at 15 percent pay le annually and maturing in 25 year was sold at a price which a 20 percent annual rate of return to the investors. The brokerage fee for handling the sale was 0.3 percent of the bond iss..

  Steel manufacturer purchases an iron ore mine and coal mine

A steel manufacturer purchases an iron ore mine and a coal mine.

  Calculate the change in income

Autonomous aggregate expenditures decreases by $300 million, the marginal propensity to consume is 0.60, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.15. Calculate the change in income.

  Continuous annuity with withdrawal rate

A continuous annuity with withdrawal rate N = $1,800/year and interest rate r = 2% is funded by an initial deposit P0. When will the annuity run out of funds if P0=$89,000? The annuity runs out after approximately__ years. Answer to the nearest whole..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd