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11 Cards in this Set
- Front
- Back
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Utility
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a measure of the satisfaction received from possessing or consumin goods and services
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Diminishing Marginal Utility
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the principle that the more of a good that one obtains in a specific period of time, the less is the additional utility yeilded by an additional unit of that good
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Marginal Utility
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the extra utility derived from consuming one more unit of a good or service
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disutility
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dissatisfaction
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total utility
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a measure of the total satisfaction derived from consuming a quantityof some good or service
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equimarginal principle or consumer equilibrium
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to mazimize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased
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cunsumer surplus
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the difference between what the consumer is willing and able to pay for a unit of a good and the price that the consumer actually has to pay
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indifference
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lacking any preference
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indifference curve
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a curve showing all combinations of two goods that the consumer is indifferent among
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indifference map
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a complete set of indifference curves
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budget line
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a line showing all the combinations of goods that can be purchased with a given level of income
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