Find out the marginal utility-demand curve, Macroeconomics

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1.  What is law of diminishing marginal utility?

2.  Find out the marginal utility for the following schedule of consuming pizza

Pizza consumed

0

1

2

3

4

5

6

7

Total Utility

0

20

28

34

38

40

40

38

3.  Explain briefly the Utility maximizing Rule.

4.  How the demand curve can be derived from the utility Maximizing Rule?

5.  What is income and substitution effect?

 


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