ECON 201 Study Guide - Final Guide: Active Valve Control System, Marginal Revenue, Iced Tea

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amaranthmacaw966

1 Dec 2013

School

University of Calgary

Department

Economics

Course

ECON 201

Professor

All

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Document Summary

Utils (coke has 13 utils, ice tea has 11 utils) Utility is ordinally measurable (coke is preferred over ice tea) Indifference between bundles may exist: ic definition a curve showing all combinations of 2 goods that give the, example (see notes) consumer the same level of satisfaction. Marginal rate of substitution (mrs) the rate at which a consumer is willing to trade one good for another while staying at the same level of satisfaction. Mrs is the slope of an ic: properties. Convex to the origin (bowed in: mrs decreases going left to right. Ics further from the origin preferred and those closer to origin: ic map set of ics. If tastes change, ics change: budget line (bl, example (see notes, consumer equilibrium maximize satisfaction subject to budget constraint, see notes, change in income (see notes, bl shifts in parallel fashion. Income increase bl shifts to the right. Income decrease bl shift to the left (inward: general case.

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utility function

1.	_____	The satisfaction or benefit that consumers receive from consuming goods or services.
2.	________________ _	A particular combination of specific quantities of goods or services
3.	________________ _	Consumers can rank all conceivable bundles of goods or services
4.	_____	If A is preferred to B, and B is preferred to C, then A is always preferred to C.
5.	_____	Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services.
6.	_____	A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility.
7.	_____	The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed.
8.	_____	The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant.
9.	_____	The line showing all bundles of goods that can be purchased at given prices if the entire income is spent.
10.	_____	The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes.
11.	_____	The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes.
12.	________________ _	The sum of the substitution and income effects.
13.	_____	A good for which quantity demanded varies directly with price, causing an upward sloping demand curve.
14.	_____	A list of prices and the corresponding quantity consumers are willing and able to purchase at each price.

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ECON 201 Study Guide - Final Guide: Active Valve Control System, Marginal Revenue, Iced Tea

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