Microeconomics - Chapter 9 Take Home Quiz

Microeconomics - Chapter 9 Take Home Quiz - Econ112...

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Econ112 – Principles of Microeconomics Spring 2008 Take – Home Quiz / Assignment on Chapter 9 Prof. Maria I. Ramirez Define the following key terms: 1. Behavioral economics – The study of situations in which people act in ways that are not economically rational. 2. Income effect – The change in the quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding all other factors constant. 3. Law of diminishing marginal utility – Consumers experience diminishing additional satisfaction as they consumer more of a good or service during a given period of time. 4. Marginal Utility (MU) – The change in total utility a person receives from consuming one additional unit of a good or service. 5. Substitution effect – The change in the quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing
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This note was uploaded on 05/02/2008 for the course ECON 112 taught by Professor Ramirez during the Spring '08 term at E. Stroudsburg.

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Microeconomics - Chapter 9 Take Home Quiz - Econ112...

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