Study Guides (248,462)
Canada (121,563)
Economics (344)

Ch 8 Econ Look Over

1 Page
119 Views
Unlock Document

Department
Economics
Course
Economics 1021A/B
Professor
Bruce Hammond
Semester
Fall

Description
Achange in the prices of good changes the slope of the budget line and a change in a consumer's income shifts the budget line. Utility is the benefit that someone gets from consuming goods and services. Marginal utility = utility of current benefit / previous benefit number Aconsumer spends the entire budget because more consumption brings more utility and only those choices that exhaust income can maximize utility. Marginal utility: total utility that results from consuming one more unit of a good. Marginal utility = MARGINAL utility/price of the good equalizes marginal utility per dollar for all goods Spending all income = equalizes the marginal utility per dollar for all goods Marginal utility of the second time/price of the good eg. DVDs. DVD is $20, $60 to spend. 50 is marginal utility. 50/20 = 2.5 To find maximizing utility, find the combo that is equal for both goods When the
More Less

Related notes for Economics 1021A/B

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit