What is the relationship between marginal utility and an individual demand curve?
The marginal utility reveals how much of an item a consumer will purchase at various prices and is implicitly an individual demand curve. Because marginal utility falls as consumption increases, a lower price is necessary to generate increased unit purchases of an item.
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Any event that causes either the demand curve or the supply curve to shift will also change the equilibrium price and quantity.
Answer the following statement true (T) or false (F)
What is one reason the federal government might "bail out" farmers in flood prone areas of the country?
A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks. B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stock-holder wealth than the well-being of farmers. C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community. D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.
Health care that actually harms the patient, such as an adverse reaction to a prescription drug is called
a. morbidity-related response. b. defensive medicine. c. adverse selection. d. iatrogenic disease. e. moral hazard.
The majority of American workers are employed in the service sector of the economy
a. True b. False Indicate whether the statement is true or false