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Questions about demand curve as marginal benefit curve

Yes, it does. The "marginal benefit", measured in monetary units, is just the WTP (willingness-to-pay) for the next unit of the good. This WTP will decrease only slightly from unit to unit, ...
VARulle's user avatar
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1 vote
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Question on Isolating The Wealth Effect in Analysis of Changes in Price-Wealth Combinations - MWG Exercise 2.F.3 Parts (e) and (f)

Yes, I think for question (e), there is a bit of an "error" in the reasoning. The total demand change can always be decomposed in an income and substitution effect. If there are only two ...
tdm's user avatar
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3 votes
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Multiplicative (Self-reinforcing) BIAS in Cross-Price Elasticity

Does this principle hold in general (i.e., cross-price elasticity having self-reinforcing bias)? No this is not something that holds. If you did get correct signs, you just got lucky, and its a ...
1muflon1's user avatar
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