Diminishing marginal utility refers to the reducing (decreasing) nature of the additional
satisfaction derived from the consumption of an extra unit of a commodity and the law is thus stated –
“as successive additional units of a commodity are consumed, the extra satisfaction
derived continues to decline.”
Wilfykil answered the question on February 6, 2019 at 07:24
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Explain any four uses of indifference curve analysis
(Solved)
Explain any four uses of indifference curve analysis
Date posted:
February 6, 2019
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Answers (1)
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Briefly explain two exceptions to the definition of an indifference curve.
(Solved)
Briefly explain two exceptions to the definition of an indifference curve.
Date posted:
February 6, 2019
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Explain the main characteristics of indifference curves
(Solved)
Explain the main characteristics of indifference curves
Date posted:
February 6, 2019
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What is an indifference curve?
(Solved)
What is an indifference curve?
Date posted:
February 6, 2019
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Answers (1)
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Illustrate and explain Consumer equilibrium under the ordinalist approach
(Solved)
Illustrate and explain Consumer equilibrium under the ordinalist approach
Date posted:
February 6, 2019
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Answers (1)
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Illustrate and explain Consumer equilibrium under the cardinalist approach
(Solved)
Illustrate and explain Consumer equilibrium under the cardinalist approach
Date posted:
February 6, 2019
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Answers (1)
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Define marginal utility and clearly explain the oxiom of diminishing marginal utility.
(Solved)
Define marginal utility and clearly explain the oxiom of diminishing marginal utility.
Date posted:
February 6, 2019
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Answers (1)
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Given the following table: If there is a successful advertising campaign that convinces consumers to buy more of commodity Y, what would the effect of this be on consumption of commodities X and Z?
(Solved)
If there is a successful advertising campaign that convinces consumers to buy more of
commodity Y, what would the effect of this be on consumption of commodities X and Z?
Date posted:
February 6, 2019
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Answers (1)
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Given the following table: What type of goods are X, Y, Z & W and why?
(Solved)
What type of goods are X, Y, Z & W and why?
Date posted:
February 6, 2019
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Answers (1)
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With the aid of diagrams, explain the importance of the concept of elasticity of supply.
(Solved)
With the aid of diagrams, explain the importance of the concept of elasticity of supply.
Date posted:
February 6, 2019
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Answers (1)
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Given that:
, Compute the point elasticity of demand and the point elasticity of supply at the equilibrium position.
(Solved)
Compute the point elasticity of demand and the point elasticity of supply at the equilibrium position.
Date posted:
February 6, 2019
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Answers (1)
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Given that: , Identify which of the two functions is a demand and a supply function
(Solved)
Identify which of the two functions is a demand and a supply function
Date posted:
February 6, 2019
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Answers (1)
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The managing director of My Kori-Lima Movie Theater Ltd has hired you as a consultant to
advise on the ticket – pricing strategy. As a basis...
(Solved)
The managing director of My Kori-Lima Movie Theater Ltd has hired you as a consultant to
advise on the ticket – pricing strategy. As a basis for your recommendations you consider historical
ticket sales data which seems to suggest the following ticket – sales elasticities:
Own – price elasticity = -0.05
Refreshment price elasticity = -0.12
Nairobi Population elasticity = +0.65
Advertising elasticity = +0.70
The managing director is contemplating a moderate increase in the advertising budget in order to
increase revenue. Is this a good idea? Explain.
Date posted:
February 4, 2019
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Answers (1)
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The managing director of My Kori-Lima Movie Theater Ltd has hired you as a consultant to
advise on the ticket – pricing strategy. As a basis...
(Solved)
The managing director of My Kori-Lima Movie Theater Ltd has hired you as a consultant to
advise on the ticket – pricing strategy. As a basis for your recommendations you consider historical
ticket sales data which seems to suggest the following ticket – sales elasticities:
Own – price elasticity = -0.05
Refreshment price elasticity = -0.12
Nairobi Population elasticity = +0.65
Advertising elasticity = +0.70
The managing director is contemplating a moderate increase in ticket prices in order to increase revenue.
Explain whether this is a good idea
Date posted:
February 4, 2019
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Answers (1)
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Given that:
QX = 9 – ½ P2
QY = 8P + ½ P2
Identify which of the two functions is a demand and a supply function
(Solved)
Given that:
QX = 9 – ½ P2
QY = 8P + ½ P2
Identify which of the two functions is a demand and a supply function
Date posted:
February 4, 2019
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Answers (1)
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State the main determinants of elasticity of demand
(Solved)
State the main determinants of elasticity of demand
Date posted:
February 4, 2019
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Answers (1)
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The demand for a commodity is five units when the price is sh. 1,000 per unit. When price per unit falls to Sh. 600 the...
(Solved)
The demand for a commodity is five units when the price is sh. 1,000 per unit. When price per unit falls to Sh. 600 the demand rises to six units.
Compute the point and arc elasticity of demand
Date posted:
February 4, 2019
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Answers (1)
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Discuss any three practical applications of the concept of elasticity of demand in management and economic
policy decision making
(Solved)
Discuss any three practical applications of the concept of elasticity of demand in management and economic
policy decision making
Date posted:
February 4, 2019
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Answers (1)
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Use the data in the table below to compute income elasticity of demand through the arc elasticity
method:
(Solved)
Use the data in the table below to compute income elasticity of demand through the arc elasticity
method:
Date posted:
February 4, 2019
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Answers (1)
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Define the term cross price elasticity of demand and clearly explain its value for substitutes and
complementary commodities
(Solved)
Define the term cross price elasticity of demand and clearly explain its value for substitutes and
complementary commodities
Date posted:
February 4, 2019
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Answers (1)