The Consumer Word Scramble
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| Term | Definition |
| CONSUMER | An individual who makes the decision whether to buy goods or services |
| UTILITY | The amount of benefit or satisfaction derived from the consumption of a good or service |
| ECONOMIC GOOD | A product or service which commands a price, derives utility and is transferable |
| CHARACTERISTIC OF ECONOMIC GOODS | Price, Utility and Transferable |
| PRICE | it must command a price |
| UTILITY | The good must provide the consumer with some feeling of satisfaction |
| TRANSFERABLE | Ownership or benefit must be capable of being given from one person to another |
| MARGINAL UTILITY | The extra satisfaction a consumer gets from consuming an extra unit of the good |
| THE LAW OF DIMINISHING MARGINAL UTILITY | As more units of the good are consumed, a point will be reached where marginal utility eventually begins to decline |
| EQUILIBRIUM | The condition where there is no tendency to change |
| EQUI-MARGINAL UTILITY PRINCIPLE | Explains the behaviour of a consumer in distributing their limited income along various goods and services |
| ******FORMULA****** | MUx / Px = MUy / Py.............MUn / Pn |
Created by:
jennifer.s
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