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Social Science
Economics
MicroEcon Ch6 - Consumer Choices
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satisfaction derived from consumer choices.
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total utility.
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Terms in this set (10)
satisfaction derived from consumer choices.
total utility.
when a price changes, consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price; always happens simultaneously with an income effect.
substitution effect.
the additional satisfaction gained from purchasing a good given the price of the product; MU/Price.
marginal utility per dollar.
the additional utility provided by one additional unit of consumption.
marginal utility.
a higher price means that, in effect, the buying power of income has been reduced, even though actual income has not changed; always happens simultaneously with a substitution effect.
income effect.
