Discuss how utility-maximization model

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Discussion 1.

Discuss how the utility-maximization model helps highlight the income and substitution effects of a price change. Provide an example.

Discussion 2.

What real-world examples do you have of the income effect? Why is it important for business managers to have a solid understanding of the income effect?

Discussion 3.

Why is it important for business managers to have a solid understanding of the law of diminishing marginal utility?

Reference no: EM133185856

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