ECON 1000 Chapter Notes - Chapter 8: Marginal Cost, Normal Good, Demand Curve
castroariane563 and 39059 others unlocked
10
ECON 1000 Full Course Notes
Verified Note
10 documents
Document Summary
All the things you can afford to buy. Budget line: marks the boundary between those combinations of goods and services that a household can afford buy and those it cannot. A rise in income shifts the budget line outward but slope remains the same. A change in price changes the slope of the budget line. Preferences: a description of one"s likes and dislikes. Utility: the benefit of satisfaction that a person gets from the consumption of goods and. The total benefit that a person gets from the consumption of all the different goods and services. Depends on level of consumption, more consumption = more utility. The change in total utility that results from a one-unit increase in the quantity of a good consumed. Decreases as more of each good is consumed. Utility-maximizing choice available income in the way that maximizes his or her total utility. Consumer equilibrium: a situation in which a consumer has allocated all of their.