Chapter 21 Terms and Concepts

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 determine. tally utility- the total center of satisfaction derived from the breathing in of a single product or a combination of products. law of diminishing bare(a) utility- the precept that as a consumer increases the consumption of a pricy or overhaul, the marginal utility leted from each supernumerary building button up of measurement of the good or assist decreases. budget constraint- the congeal 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; play off to the change in total utility divided by the change in the quantity consumed. rational carriage- human bearing 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 sawbuck spent on each good or ser! vice 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, decree it on our website: OrderCustomPaper.com

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