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1. After reading the lesson on Consumer Behavior, describe and explain how marginal utility and demand are related.
2. After processing the information read in Demand and Supply, suppose a producer sells 1000 units of a product at $5 per unit one year, 2000 units at $8 the next year, and 3000 units at $10 the third year. Using only the information that you have been given, is this evidence that the law of demand is violated? Explain.
3. The president of a toy company asks you for advice about whether the company should cut the price of its best-selling doll this year based on the following information: last year the company cut the price of its best-selling doll by 10% and the total revenues from doll sales increased by 10%.
4. Given that you are carrying on a conversation with your neighbor and she or he asks you what does the term “an economic way of thinking” mean. How would you reply to your concerned neighbor using the concepts and tools that you have been exposed to via the notes, study questions, lab that you have been required to complete in your economics class before completing the standard graded activity (GA)?
Use economics terms, concepts, methods, etc. to support your points.
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