Econ 103 Chapter 4 notes
The law of demand
-Diminishing Marginal Value = -the more you have of anything, the less you are willing
to give up to get more of it.
-the maximum one is willing to sacrifice at the margin
for a good, per unit of time, declines the more
one has of that good - other things held constant.
-Economic decisions depend on real income and relative prices.
-Real income in terms of how much of a specific good you can buy = M(nominal income)
/ P (price le