Employees should always aspire to be in a more inelastic labor supply curve, because it allows them more freedom and more security. There are several factors an employee can improve to reach a more inelastic labor supply curve. The three main factors are mind, body, and spirit. Miranda is going to college to improve her mind, which will qualify her for a higher paying job that involves more freedom. One can also improve their body in order to become more qualified to be an athlete of some kind. Spirit, however, refers more to the natural talent or passion attributed to artists and writers, so it would be extremely difficult to improve in that area. Most people who aspire to improve their situations choose to improve upon their mind by seeking
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She had planned to get a bowl of ice cream, but now realizes that she is getting tired of the chocolate ice cream she bought a few weeks ago. The grocery store had a special that week on ice cream—buy one, get one free. Naturally, Miranda took advantage of the sale by purchasing two half-gallons of chocolate ice cream. At first, she was excited about her purchase, but after about two weeks of eating chocolate ice cream for desert almost every night, Miranda has grown tired of chocolate. Instead of the ice cream, Miranda grabs a bag of potato chips and goes to her room to resume her studies while she eats. From an economic perspective, one would say that Miranda is experiencing diminishing marginal utility. The law of diminishing marginal utility states that, “at some point, as one continues to consume a good, the satisfaction obtained from that good will always start to decrease” (O’Sullivan, Sheffrin, & Perez, 2008). Miranda has been consuming chocolate ice cream for about two weeks, and the satisfaction she originally obtained from the ice cream has been slowly increasing at a decreasing rate. One could say that Miranda has reached maximum marginal utility, or maximum satisfaction, with the ice cream. Any further consumption of ice cream would take away from her
She had planned to get a bowl of ice cream, but now realizes that she is getting tired of the chocolate ice cream she bought a few weeks ago. The grocery store had a special that week on ice cream—buy one, get one free. Naturally, Miranda took advantage of the sale by purchasing two half-gallons of chocolate ice cream. At first, she was excited about her purchase, but after about two weeks of eating chocolate ice cream for desert almost every night, Miranda has grown tired of chocolate. Instead of the ice cream, Miranda grabs a bag of potato chips and goes to her room to resume her studies while she eats. From an economic perspective, one would say that Miranda is experiencing diminishing marginal utility. The law of diminishing marginal utility states that, “at some point, as one continues to consume a good, the satisfaction obtained from that good will always start to decrease” (O’Sullivan, Sheffrin, & Perez, 2008). Miranda has been consuming chocolate ice cream for about two weeks, and the satisfaction she originally obtained from the ice cream has been slowly increasing at a decreasing rate. One could say that Miranda has reached maximum marginal utility, or maximum satisfaction, with the ice cream. Any further consumption of ice cream would take away from her