The law of diminishing marginal utility helps explain:
a. why most individual demand curves are straight lines.
b. why most supply curves slope upward
c. why most individual demand curves slope downward.
d. why marginal utility falls when total utility falls.
c
Economics
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Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5. B) 0.75. C) 1.33. D) 2.00.
Economics
Some politicians have recently suggested changing the income tax system in the U.S. to a flat tax system where all taxpayers would pay the same percentage of their income in tax to the federal government
Explain how such a change can be analyzed in terms of efficiency. Do you believe that this tax will have equity effects as well?
Economics