PAPM 1000 Chapter Notes - Chapter 15: Marginal Utility, Neoclassical Economics, Marginalism

• School: Carleton University
• Department: Public Affairs and Policy Management
• Course: PAPM 1000
• Professor: Marc Andre Gagnon

Document Summary

With the passage of time one"s tastes can change. (295) Elasticity of demand: the only universal law pertaining to a person"s desire for more of a commodity, marshall said, is that, other things being equal, it diminishes with every increase in his supply of that commodity. (301) Immediate present: market prices refer to the present, with no time allowed for adaptation, of the quantity supplied to changes in demand. (303) If a good is perishable, and if we assume that the seller is trying to maximize profits or minimize losses, the market supply curve is perfectly inelastic a vertical straight line. (303) If the good is not perishable, the sellers have reservation prices below which they will not sell. (303) For the latter, marshall used the term waiting rather than senior"s abstinence. (304: the worker finds additional hours of labor each day to be increasingly irksome.