ECON 212 Quiz: ECON 212quizQuiz1 Section001-Solution-010216

• School: Queen's University
• Department: Economics
• Course: ECON 212
• Professor: All

Document Summary

Econ 212 - microeconomic theory i - winter 2016 - section 1. Question 1: with these data draw a graph of the linear demand curve for art"s chocolate pies. Demand for art"s chocolate pies i l e p e t a o c o h c f o e c i r. 1: find the price elasticity of demand at each of the three prices. The marginal utility of x diminishes as the consumer buys more x. This means that each addi- tional unit of x bought by the consumer brings her/him less utility than the previous unit of x, holding the quantity of y constant. The marginal rate of substitution of x for y declines as the consumer increases her/his con- sumption of x along an indifference curve. As the denominator increases and the numerator decreases, the value of them rsx,y diminishes.