by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Rule of Maximizing Utility? When making purchases you should choose the item with the greatest marginal utility per dollar spent (i.e., the most bang for the buck). For a finite budget (limited funds to expend), and making a choice of the quantity of two...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Supply? Supply is the number or quantity of goods or service available for purchase or consumption within a market or economy.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Demand? Demand, in economics, is a measure of the extent to which a consumer desires and willingness to purchase a given product or service at a pre-defined time or period. To constitute demand in the market, a consumer must have both the desire or need and...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Law of Diminishing Returns? The law of diminishing returns is the premise that additional units of a given resources may initially provide greater benefit; but, eventually the benefit provided by each additional unit will decline until it reaches zero (or...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Utility? Utility means use or usefulness. In economics, utility regards the extent to which a good or service satisfies a consumer’s need or want. It can be thought of as a measure of satisfaction.
