click below
click below
Normal Size Small Size show me how
Micro- Quiz 3
Microeconomics Quiz 3- Chapter 7
Question | Answer |
---|---|
Utility | The satisfaction one gets from consuming a good or service |
Total Utility | Total amount of satisfaction |
Marginal Utility | Extra satisfaction from an additional unit of the good |
Utility Formula | MU= Change TU/Change Q |
Law of Diminishing Marginal Utility | As consumption increases, the marginal utility obtained decreases |
Income Effect | The impact a price change has on a consumer's real income |
Substitution Effect | The impact a price change has on a product's relative expensiveness |