I was given possible questions for my microeconomics quiz and two of the questions I can't seem to find a good answer/explanation. Your help would be great!
1. Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.
2. You own your own business, and your research indicates that the price elasticity of demand for your product is 3.5. What pricing strategies should you follow and why?
1. Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.
2. You own your own business, and your research indicates that the price elasticity of demand for your product is 3.5. What pricing strategies should you follow and why?