ECON 101 Study Guide - Midterm Guide: Marginal Utility, Indifference Curve, Giffen Good
hussam.sw and 39351 others unlocked
78
ECON 101 Full Course Notes
Verified Note
78 documents
Document Summary
Utility - the satisfaction that a consumer receives from consuming some good or service. Total utility - the total satisfaction resulting from the consumption of a given commodity by a . Marginal utility (mu) - the additional satisfaction obtained from consuming 1 additional unit of a commodity. Diminishing marginal utility the utility that any consumer derives from successive units of a particular product consumed over some period of time diminishes as total consumption of the product . Maximizing utility a utility-maximizing consumer allocates expenditures so that the mu . Obtained form the last $ spent on each product is equal. Real income income expressed in terms of the purchasing power of money income that is, the q of goods. And services that can be purchased with the money income . Substitution effect the change in the q of a good demanded resulting from a change its relative price (holding.