tailieunhanh - Tiếng anh quản trị kinh doanh part 10

Tham khảo tài liệu 'tiếng anh quản trị kinh doanh part 10', ngoại ngữ, anh văn thương mại phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Unit 4 Some economic laws satisfaction is greater than his financial sacrifice. With each purchase however his satisfaction decreases although the prices remain the same. If a consumer s supply of money is limited a point will come when the financial sacrifice is greater than the satisfaction of smoking cigarettes. He will stop buying the commodity. The cigarettes are the same but their utility has changed. If the prices rose he would buy fewer if they fell he might buy more. We can see that the nature of a commodity remains the same but its utility changes. This indicates that a special relationship exists between goods and services on the one hand and a consumer and his money on the other hand. The consumer s desire for a commodity tends to diminish as he buys more units of that commodity. Thus tendency is called the Law of Diminishing Marginal Utility. Utility is of course related to the Laws of Supply and Demand. When economists talk about a Law of Supply they mean that a rise in prices tends to increase the supply of a commodity while a fall in prices tends to reduce it. When they talk about the Law of Demand they mean that a fall in prices tends to increase the demand for a commodity while a rise in prices tends to decrease the demand. In any economic situation a consumer will decide to buy a commodity only in terms of its particular utility to him. If the prices of a particular commodity rise in the economy as a whole the rise will naturally encourage producers to make more of that commodity. If on the other hand prices fall locally or throughout the world producers will reduce production. Supplies of many commodities can generally be adjusted to suit market conditions. This means that changes in market prices lead to changes in the quantity of a particular commodity made available to consumers. Household goods and furniture are in this category. In such instances supply is said to be elastic because it can be increased or decreased rapidly to suit market .

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