The principle that as the consumer increases the consumption of a good or evil` the marginal utility obtained from each additional unit of the good or service decreases.
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 collection of goods and services).
The total amount of satisfaction derived from the consumption of a single product or a combination or products.
The extra "utility" a consumer obtains from the consumption of one additional unit of a good or service; equal to the change in total utility divided by the change in the quantity consumed.
Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility.
The limit that the size of a consumer's income (and the prices that must be paid for goods and services) imposes on the ability of that consumer to obtain goods and services.
The principle that to obtain the greatest utility, the consumer should allocate money income so that the last dollar spent on each good or service yields the same marginal utility.
A change in the quantity demanded of a product that results from the change in real income (purchasing power), caused by a change in the product's price.
In marginal utility theory, the combination of goods purchased based on marginal utility (MU) and price (P) that maximizes total utility; the combination for goods X and Y at which MUx/Px=MUy/Py. In indifference curve analysis, the combination of goods purchased that maximize total utility be enabling the consumer's budget line (or budget constraint).
1. A change in the quantity demanded of a consumer good that results from a change in it's relative expensiveness caused by a change in the product's price;
2. The effect of a change in the price of a resource on the quantity of the resource employed by a firm, assuming no change in its output.
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