Explain the role of utility maximization in consumer choice

Would this taxation raise or lower the prices consumers pay for fatty foods?
December 25, 2020
What is the percentage change in sports car sales, given the elasticity?
December 25, 2020

1.       Explain the role of utility maximization in consumer choice, and use the concept of price elasticity of demand.

2.       Explain the role of cost minimization in producer decisions, and use the concept of price elasticity of supply

3.       Explain the incidence of a tax.

4.       Diminishing marginal utility means that (LO6A-1) a) marginal utility falls as consumption increases. b) marginal utility gets smaller over time. c) utility falls as consumption increases. d) utility gets smaller over time.