Question

1. Explain utility, total utility, and marginal utility and the differences between them. Include examples.

2. Explain with examples, the law of demand, and the demand curve.

3. Explain the rational consumer, marginal utility, and price.

4. With examples, explain the difference between elastic and inelastic demand. Possible examples - beer and cigarettes.

5. With examples, explain how elasticity of demand effects total revenue.