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I am an international student so If you could not write advanced words that would imply that I did not write it and it has to be organized because every question has 3 or 4 parts,I would appreciate it. btw i think you should have the book with macroeconomics or at least know the materials ?
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Running Head: MACRO-ECONOMICS
1
Economics
Name
Course
Tutor
Date
MACRO-ECONOMICS
2
QUESTION 1
Part A
The law of marginal utility implies that the utility of a unit of cookies consumed
decreases with increase in the number of cookies consumed. The law serves to regulate the
amount of the free cookies to be consumed in the sense that the utility of the cookies reduces as
the consumer uses more cookies and at one point, the marginal utility will come to zero and
therefore there would be no need to consume more cookies which do not have any extra utility
(Easterlin, 2005).
Part B
For the cookies that are consumed at a fee, the marginal utility of cookies reduces with
the increase in the number of cookies consumed. Suppose a cookie costs $0.5, the marginal
utility of the amount spent to purchase that cookie will be very low if many cookies of that type
are consumed and in that process, the number of cookies consumed is tied to the maximum
utility irrespective of the amount of money the consumers have at their disposal.
Part C
Utility is the satisfaction derived from the use of commodities. The rule of utility
maximization implies that the utility received by a customer ...
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