Is there a logical link between the law of demand and the assumption that individuals seek to maximize utility? (Hint: Think of how the condition for consumer equilibrium can be used to express the...

Is there a logical link between the law of demand and the assumption that individuals seek to maximize utility? (Hint: Think of how the condition for consumer equilibrium can be used to express the inverse relationship between price and quantity demanded.) List five sets of two goods each (i.e., each set is composed of two goods; for example, diamonds and water make up one set) such that the good with the greater value in use has a lower value in exchange than does the good with the lower value in use.

May 18, 2022
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