1) How do economists model consumer satisfaction? 2) How do consumers optimize their purchasing decisions? 3) What is the diamond-water paradox?

1) How do economists model consumer satisfaction?

2) How do consumers optimize their purchasing decisions?

3) What is the diamond-water paradox?

4) Distinguish between total utility and marginal utility .

5) Explain why the law of diminishing returns takes place for all goods/services.

6) Explain the concept of consumer optimum.