Discussion Post: Microeconomic
• Discuss how the utility-maximization model helps highlight the income and substitution effects of a price change. Provide an example.
• What real-world examples do you have of the income effect? Why is it important for business managers to have a solid understanding of the income effect?
• Why is it important for business managers to have a solid understanding of the law of diminishing marginal utility?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.