Fields of study behavioural economics and neuro economics

Reference no: EM13685960

1. To increase marginal utility, you should decrease consumption (everything else held constant). This statement is correct, even though it sounds strange. Describe why.

2. Presume that the marginal utility of good A is 4 times the marginal utility of good B, however the price of good A is only 2 times the price of good B. Is this point customer equilibrium? If not, what will occur?

3. What is the purpose of the two fields of study behavioural economics and neuro economics? Why might people tend to be overconfident?

Reference no: EM13685960

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