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Unformatted text preview: units since, Mu 2 = 30 = price Or, Mu 3 = 18 = price Variations in the number of units consumed at varying prices help to establish the law of demand. As the price of a good falls from 40c to 2c the demand for that good rises from 1 to 5. On the other hand, as the price of a good rises from 1c through 20c the demand for that good goes on falling from 5 through 1. Therefore the inverse relationship between price and quantity of a good demanded at once follows, once the DMU principle is accepted and applied....
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- Fall '10