ECON 262

In Class Exercise Four – Demand

1. What is the law of demand?

2.  What does utility mean?

3.  What is diminishing marginal utility (explain it) - give an example?

4.  Relate diminishing marginal utility to the law of demand and the downward sloping demand curve.  Explain.

5.  Provide another explanation for the law of demand?

6.  What questions do you still have about this material?