Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

(a)[12]

Explain how the law of diminishing marginal utility could be applied to build a consumer’s demand curve for a product.

(b)[13]

Analyse how budget lines can be used to show what occurs for both a normal good and an inferior good when the price of the good rises at the same time as a consumer’s income rises.

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