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Economics Issues - Coursework Example

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The author of this paper "Economics Issues" casts light on certain economics issues. According to the text, equilibrium in the capital market is defined by the rate of interest at which savings and demand for loanable funds are equal…
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Economics Issues
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Economics Issues

Download file to see previous pages... Consumers play a key role in perpetuating discrimination in the labor market through their choices and consumption patterns. If consumers prefer one commodity over another, they will lower demand in that labor market in which they do not prefer their goods. Consumers play a key role in perpetuating discrimination in the labor market through their choices and consumption patterns. If consumers prefer one commodity over another, they will lower demand in that labor market in which they do not prefer their goods. The law of diminishing marginal utility states that as consumption of a given commodity is increased by an individual while keeping the consumption of other products constant, there will be a decline in the marginal utility of the individual that is derived from the consumption of each and every additional unit of the product. The law of diminishing marginal utility does not contract the notion that individuals always want more of all goods because they are limited by their budget constraint hence they cannot acquire all that they want at any given instance. Properties of indifference curves(a) NonintersectionIndifference curves cannot intersect each other because, at the point of tangency, the curve on the higher side will yield much more of the two commodities as compared to the lower curve hence they can never intersect. (b) Convexity to the origin(c) The higher the indifference curve, the higher the level of satisfaction. The consumers will prefer to choose higher indifference curves since they aim at maximizing their utility. (d) Negatively sloping. The indifference curves are negatively sloping because the consumer must give up the consumption of one commodity in order to consume more of the other commodity.  ...Download file to see next pagesRead More
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