What does diminishing marginal utility imply about the shape of a person's demand curve? Explain
What will be an ideal response?
Demand curves will be downward sloping because of the law of diminishing marginal utility. Individuals will compare the value of the marginal utility they receive from a good with its price: if the value of the good is higher or equal to the price, the individual will purchase it. Thus, a person will buy more of a good at a low price than at a high price.
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The introduction of new technologies to production is ________ source of productivity improvement.
A. the only B. the least important C. no longer a D. the most important
According to the Application, large increases in per capita income in the United States over the past 30 years have
A) led to a higher divorce rate. B) not increased happiness levels. C) had the greatest impact on retired people. D) lowered stress levels.
Barter requires a double coincidence of wants. This means that:
a. at least two traders must demand a commodity. b. any two traders involved in a transaction must have money. c. each trader must demand at least two commodities. d. either of the two traders involved in a transaction must have money. e. when two traders are involved in a transaction each trader must want what the other has to offer.
The most important job of the Federal Reserve is to ______.
Fill in the blank(s) with the appropriate word(s).