Siteadmin, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
125,794
edits
Changes
Jump to navigation
Jump to search
Line 36:
Line 36: + +
Economics Homework Four - Model (view source)
Revision as of 19:03, October 11, 2009
, 19:03, October 11, 2009added one
10. Prove the Law of Demand as simply as you can, perhaps using the assumption that the consumer always tries to maximize marginal utility.
10. Prove the Law of Demand as simply as you can, perhaps using the assumption that the consumer always tries to maximize marginal utility.
:People always want to acquire as much as possible with as little effort as possible, maximizing their consumer surplus. Therefore, if two identical widgets are for sale at $10 and $15, respectively, any rational person will purchase the $10 one, as it gives them another $5 to use for something else. If they want more than one, they can spend $30 and get three rather than two by purchasing the cheaper ones. (Duncan)
11. Discuss the Irish Potato Famine between 1846 and 1849, and whether you think potatoes were an "inferior good" then.
11. Discuss the Irish Potato Famine between 1846 and 1849, and whether you think potatoes were an "inferior good" then.