Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Diminishing Marginal Utility
Diminishing marginal utility as well is to be held responsible for the rise in demand for a product when its price declines. When an individual purchases a product, he swaps his money revenue with product in order to increase his satisfaction. He continues to buy goods and services as long as marginal utility of money (MUm) is lesser than marginal utility of commodity (MUC).
Given the price of a commodity, he modifies his purchase so that MUC = MUm. This plan works well under both Marshallian assumption of constant MUmand Hicksian assumption of diminishing MUm. When price falls, (MUm = Pc) < MUC. So, equilibrium state is upset. To get back his equilibrium state, i.e., MUm = PC, = MUC, he purchases more quantities of the commodity. For, when supply of a commodity rises, its MU falls and once again MUm = MUC. For this reason, demand for a product increases when its price falls
The production function can have many uses. It can be used to compute least-cost factor combination for a given output or maximum output combination for a given cost. Knowledge of
Direct intervention The government can also intervene directly in the economy to see that its wishes are carried out. This can be achieved thorough: a. Price and i
TC=100+0.15Q, Qu=1000-10Pu
Explain the demand for a commodity The functional relationship between demand for a commodity and its various determinants may be expressed mathematically in terms of a demand
Question 1: a. Discuss the alternative theories of money demand. b. Highlight the impact of financial liberalization on the money demand in a small island developing econo
Compare the price elasticity at two parallel demand curves at a given price. This has been explained in Fig above where two demand curves AB and CD are given that are parallel to e
Factors influencing demand for a product These are broadly divided into factors determining household demand and factors affecting market demand . Factors affecting hou
Define Williamson''s Model of Managerial Discretion practice?
when firm can achieve optimization
In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is: where p is the price for one cone of ice cream. All ice cream pr
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd