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Without a graph this is a bit tougher. To rise at a decreasing rate simply means to get smaller marginally. For example. My utility of drinking a glass of water over 3 drinks. First drink is worth 10 units total. By the time I take the second drink it is worth 6 units but gives me a total of 16 units. The third drink gives me 4 units and puts me at a total of 20 units. Notice total is increasing but it increases slower. It jumped from 0 to 10. Then only increased by 6. Then increased by 4. It is increasing but not by +10 everytime like the first one. This forms a parabola. Note: Where TU=max, MU=zero.
What else can I help you with?
If the cost of input rises what will happen to supply?
there is a shift in the supply curve when the cost of input rises.
What is the difference between marginal utility and marginal benefit?
I think this is the answer, based off my textbook, "Microeconomics" by Zupan and Browning. Marginal benefit is the "...maximum amount the consumer would pay for an additional unit" of some good. The height of the demand curve can be interpreted as showing the marginal benefit of some good. Marginal utility is the amount that total utility rises when consumption increases by one unit. For example if total utility for one scoop of ice cream is 10 units and totality utility for the second scoop of ice cream is 15 units, marginal utility measures the difference, 5 units, between the two.
What is the relationship between the law of supply and the supply curve?
it always rises from left to right
Why does a demand curve slope downward left to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
How does a supply curve illustrate the law of supply?
it always rises from left to right
If the cost of input rises what will happen to supply?
there is a shift in the supply curve when the cost of input rises.
What is the difference between marginal utility and marginal benefit?
I think this is the answer, based off my textbook, "Microeconomics" by Zupan and Browning. Marginal benefit is the "...maximum amount the consumer would pay for an additional unit" of some good. The height of the demand curve can be interpreted as showing the marginal benefit of some good. Marginal utility is the amount that total utility rises when consumption increases by one unit. For example if total utility for one scoop of ice cream is 10 units and totality utility for the second scoop of ice cream is 15 units, marginal utility measures the difference, 5 units, between the two.
Why does a demand curve downwards from left to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
What is the relationship between the law of supply and the supply curve?
it always rises from left to right
Why does a demand curve slope downward left to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
Why does a demand curve slope downward from left to to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
How does a supply curve illustrate the law of supply?
it always rises from left to right
Along a linear demand curve as the price rises demand becomes more?
elastic
Going from left to right on the aggregate demand curve real GDP .?
rises as price level falls
Going left to right on the aggregate demand curve real GDP?
rises as price level falls
Why engel curve slopes negatively downward in case of giffen goods?
The Engel curve shows how household expenditure on goods changes with rising income. Giffen goods are inferior goods. As household income rises, instead of consuming more of the Giffen goods, expenditure is switched to better quality goods. Consequently, the demand for a Giffen good falls as income rises and this results in a downward sloping curve. Incidentally, a curve that slopes "negatively downward" is actually a curve that slopes positively upwards!
What is the Difference between Income consumption curve and price consumtion curve?
I'll give an introductory idea: In Microeconomics a consumer's well-being or how better off he is, is measured by his utility function. Utility function is a function of those variables that influence his well being i.e. consumption of goods/services that increase his well-being. His utility can be maximised subject to his money income with which he can buy the goods that maximise his utility. After finding the optimal consumption bundle using calculus, we find them to be functions of the exogenous variables such as Prices and Income. This must hold true because as Prices of goods rise, we consume less of that commodity and substitute it by the other good. Similarly as Income rises for normal goods consumption of both rises by the same proportion. After knowing the above, we come to the Income and price consumption curves. Income consumption Curves (ICC) are locus of those points that connect the optimal consumption of goods as income changes (ceteris paribus) in a Good x Good framework, when you choose to draw it in a Good x Income framework you get the Engel Curve. Similar is the Price consumption curve, which is the locus of points connecting commodity consumption against price changes of a particular good (ceteris paribus) in a Good x Good framework.
