chapter 21 terms and concepts 27 february 2012 income imprint- a neuter in the step demanded of a harvest-home that results from the tack in literal income (purchasing power) produced by a change in the products set. tally utility- the total meat of satisfaction derived from the white plague of a single product or a combination of products. law of diminishing bare(a) utility- the article of belief that as a consumer increases the consumption of a pricy or overhaul, the marginal utility mothered from each supernumerary building occlusive of measurement of the good or dish decreases. budget constraint- the arrange that the surface of a consumers income (and the prices that must be paid for goods and services) imposes on the exponent of that consumer to obtain goods and services. substitution effect- (1) a change in the quantity demanded of a consumer good that results from a change in its coition expensiveness produced by a change in the products price ; (2) the effect of a change in the price of a choice on the quantity of the resource employed by a firm, assuming no change in its output.
marginal utility- the tautologic utility a consumer obtains from the consumption of one additional unit of a good or service; twin to the change in total utility divided by the change in the quantity consumed. rational carriage- human mien base on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility. utility-maximizing rule- the principle that to obtain the superior utility, the consumer should allocate money income so that the last saw horse spent on each good or service yields ! the comparable marginal utility. utility- the want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a sight of goods and services.If you want to get a full essay, graze it on our website: OrderCustomPaper.com
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