1. What is law of diminishing marginal utility?
2. Find out the marginal utility for the following schedule of consuming pizza
|
Pizza consumed
|
0
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
|
Total Utility
|
0
|
20
|
28
|
34
|
38
|
40
|
40
|
38
|
3. Explain briefly the Utility maximizing Rule.
4. How the demand curve can be derived from the utility Maximizing Rule?
5. What is income and substitution effect?