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A. Satisfaction received and limited budgets determine consumer demand. B. Utility measures the want-satisfying power of a good or service. C. Marginal utility is the additional or incremental satisfaction (utility) a consumer receives from acquiring one additional unit of a product. D. Law of diminishing marginal utility: Consuming more of a product within a given period will at some point result in diminishing marginal utility. E. Utility maximizing rule: When spending a limited amount of money, consumers try to equate the marginal utility per dollar for the items being purchased. F Normal Goods, consumers buy more as income rises, Inferior Goods, buy less. beef G. Inferior Goods, consumers buy less as income rises, Inferior Goods, buy fewer potatoes
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H.
Consumer's surplus |