Elaborate and explain  income effect in case of inferior goods.

what is the solution

State each of the 4 features of preferences and an example of each being violated.

Give an example of inferior good and an example of normal good that you have encountered and how has change in income affected your spending in each case.

Alfred marshall concept of marginal utility

s) Using the indifference curves, a budget line and a price change, show how we can derive an individual's demand curve for a product..

Adam Smith from the Classical School had introduced the “water-diamond paradox” in his Theory of Value. But he did not solve the paradox because he failed to understand the concept of utility. Explain by using relevant graph how this paradox was solved by William Stanley Jevons from the Marginalist School by using law of diminishing marginal utility.

Consider the two questions about utility. The table refers to the first question only. Tod loves to travel, and he takes several river cruises per year. The table contains information about the utility Tod gets from the river cruises. Number of river cruises Total utility Marginal utility 0 0   1 12 12 2 20 8 3 25 5 From this information, it can be concluded that the number of river cruises Tod takes is indeterminable without knowing Tod’s income or the price of the cruises. that total utility is maximized when Tod takes one river cruise. that Tod will take two river cruises. that Tod will take three river cruises. Suppose that Jim has $4 to spend on a snack and that the only thing available is tea and scones. Jim’s marginal utility of the first cup of tea is 30 and his marginal utility of the second cup of tea is 20. Each cup of tea costs $1. Jim’s marginal utility of the first scone is 80 and his marginal utility of the second scone is 60. Each scone costs…

For most goods if a consumer's income increases his demand for the goods will do what?

Number Consumed Total Utility Marginal Utility 0 0   1 9   2 19   3 27   4 35   5 42   6 42   7 40   Find Marginal utility for each one.