Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.
Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.
Homework Answers
The law of demand is based on the law of Diminishing Marginal Utility. According to this law, when a consumer buys more units of a commodity, the marginal utility of that commodity continues to decline. Therefore, the consumer will buy more units of that commodity only when its price falls.
When less units are available, utility will be high and the consumer will be prepared to pay more for the commodity. This proves that the demand will be more at a lower price and it will be less at a higher price. That is why the demand curve is downward sloping.
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Use the law of diminishing utility to explain why a demand curve
is typically downward-sloping.
Which of the following is the reason why the demand for labour is downward sloping? a....
Which of the following is the reason why the demand for labour is downward sloping? a. The law of diminishing marginal product. b. The law of diminishing marginal resource costs. c. The law of diminishing marginal utility. d. The laws of demand.
Why is the Phillips curve downward sloping? Use the model of aggregate demand and aggregate supply...
Why is the Phillips curve downward sloping? Use the model of aggregate demand and aggregate supply to explain with graph. (18marks)
1) List and explain the three reasons the aggregate-demand curve is downward sloping. 2) Explain why...
1) List and explain the three reasons the aggregate-demand curve is downward sloping. 2) Explain why the long-run aggregate-supply curve is vertical. 3) What causes aggregate demand to shift to the left and what causes an aggregate demand to shift to the right? Give one example for each scenario. 4) Explain why economic fluctuate in the short term and contrast short-term and long-term economic performance. 5) How can we use the aggregate demand and supply models to study the sources...
7. A downward-sloping investment function yields a falling IS curve, but a downward-sloping demand for real money balance curve yields a rising LM curve. Why?
7. A downward-sloping investment function yields a falling IS curve, but a downward-sloping demand for real money balance curve yields a rising LM curve. Why?
can you explain clearly why the aggregate demand curve is downward sloping using the money market...
can you explain clearly why the aggregate demand curve is downward sloping using the money market ? (It would be highly appreciated if you explain with typing no handwritten)
Economists use the model of aggregate demand and aggregate supply to explain downward sloping Phillips curve....
Economists use the model of aggregate demand and aggregate supply to explain downward sloping Phillips curve. Elaborate using appropriate graph.
A. Define utility as an economist would. B. State and explain the Law of Diminishing Marginal...
A. Define utility as an economist would. B. State and explain the Law of Diminishing Marginal Utility. C. How is the Law of Diminishing Marginal Utility reflected in the demand curve?
The topic of this discussion is on an incredibly important concept in utility maximization: the law...
The topic of this discussion is on an incredibly important concept in utility maximization: the law of diminishing marginal utility. This term is a reason why the demand curve itself is downward-sloping. Specifically answer this prompt: Can you think of any examples of goods or services where the law of diminishing marginal utility does not apply? If the law of diminishing marginal utility does apply to certain goods or services, how could a business change pricing to take advantage of...
a) Explain why the Demand Curve is downward-sloping (2 sentences max.) b) Under which circumstances do...
a) Explain why the Demand Curve is downward-sloping (2 sentences max.) b) Under which circumstances do we move up the supply curve as opposed to shifting the whole curve? (2 sentences max.) c) What is the difference between a "normal" and "inferior" good? For which demand shifter is this distinction particularly important? (3 sentences max.) d) State a good that you deem “inferior”. Briefly explain why (1 sentence max.). 1
Financial markets and the LM relation. a) Explain why the money demand curve is downward sloping...
Financial markets and the LM relation. a) Explain why the money demand curve is downward sloping and what b) What types of policies can the central bank implement to reduce the interest c) Define the velocity of money. What effect does an increase in interest rate d) Illustrate graphically the effect of a drop in nominal income on the money e) Illustrate graphically the effect of a purchase of bonds by the Federal Reserve factor(s) cause shifts in the money...
a) Explain why the Demand Curve is downward-sloping (2 sentences max.) b) Under which circumstances do we move up the supply curve as opposed to shifting the whole curve? (2 sentences max.) c) What is the difference between a "normal" and "inferior" good? For which demand shifter is this distinction particularly important? (3 sentences max.) d) State a good that you deem “inferior”. Briefly explain why (1 sentence max.). 1
Financial markets and the LM relation. a) Explain why the money demand curve is downward sloping and what b) What types of policies can the central bank implement to reduce the interest c) Define the velocity of money. What effect does an increase in interest rate d) Illustrate graphically the effect of a drop in nominal income on the money e) Illustrate graphically the effect of a purchase of bonds by the Federal Reserve factor(s) cause shifts in the money...
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