Question

Part A

Using the economist's model of choice, explain the motivation for two decisions you have made in the past year.

Part B

Assuming that the law of diminishing marginal utility does not hold, how differently do you expect consumers to behave.

Answer 1

Part A

Using the economist model the motivation for two decisions include the:

Behavior: The behavior is important as how you react with other so that it should impact in the market and it will decide the growth of the company.

Rationality: The rationality is also the important factor that includes the situation as well as the scenario that would impact the current market situation.

Part B

The law of diminishing states the person increases the consumption of production while the consumption of other remain constant that derives one more additional utility and if in the case of decline that it derives one additional unit and it would definitely impact on the behave of the consumer most probably it might decline but the behavior of the consumer will totally depend on the market.