Current household budget-tastes and preferences

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Explain how your own current household budget, tastes and preferences, and future expectations determine how much of each of these products you purchase in a year. Describe the benefits (utility) you get from each product and service.

Suppose the price of the tickets were cut in half. How would your consumption of cultural or sporting goods change? Why?

Suppose your household budget was suddenly doubled because you received a 100% raise. How would your consumption of each of these goods and services change? Explain your answer in terms of utility and marginal analysis.

What is the law of diminishing marginal utility? How does this law affect the ability of table salt companies to stimulate demand for their product?

Reference no: EM13733413

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