Hypothesis of diminishing marginal utility


Question 1: How the hypothesis of diminishing marginal utility is used to explain both the demand curve's negative slope and consumer surplus - a central concept in benefit-cost analysis;

Question 2: How small user charges can generate both large resource savings and small reductions in household utility; and

Question 3: How supply and demand analysis is used to determine the extent to which taxes can be passed on to others.

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Microeconomics: Hypothesis of diminishing marginal utility
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