Some Fundamentals of Consumer Choice

Here are some fundamentals of consumer choice: Limited income necessitates choice. Consumers make choices purposefully. One good can be substituted for another. Consumers make choices without perfect information, but knowledge & past experiences do help. The Law of Diminishing Marginal Utility: As the rate of the consumption of a consumer good increases, the marginal utility … More Some Fundamentals of Consumer Choice

Applications & Extensions of Supply and Demand

The markets for resources and products are closely linked. Households supply resources (such as labor) to businesses earn income, and businesses supply products (goods and services) to households. It’s a yin and yang thang, baby. The labor market is a vital resource market. If there’s an increase in the demand for a product, then the … More Applications & Extensions of Supply and Demand

The Law of Demand, Consumer Choice, the Market Process, Etc.

There is an inverse relationship between price and the quantity of a good that people are willing to purchase. As a natural function of markets, most people are willing to buy less of a good as its price increases, and they’re willing to buy more of a good as the price decreases. As a side … More The Law of Demand, Consumer Choice, the Market Process, Etc.

Private Property Rights and Private Ownership

Private property rights involve three things: The right to exclusive use of the property (that is, the owner has sole possession, control, and use of the property, including the right to exclude others); Legal protection against invasion from other individuals who would seek to use or abuse the property without the owner’s permission; and The … More Private Property Rights and Private Ownership