Lecture 3 Market Demand Things that affect demand in macroeconomics: Assumptions about consumers 1. 2. 3. Utility: Rational: The Law of Diminishing Marginal Utility: Example: (Slices of pizza) Law of Demand: Market Supply Assumptions about firms 1. 2. 3. Examples of Resources: Law of Supply: Production Possibilities Frontier (PPF) Goods Plan A Plan B Plan C Plan D Plan E Assumptions about data: 1. 2. 3. Opportunity Cost: Law of Increasing Opportunity Costs: Goods Plan A Plan B Plan C Plan D Plan E Gina Microsoft Word - LN03
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