Economics-Chapter-10

Economics-Chapter-10 - Economics:Chapter10...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics: Chapter 10 22/10/2007 13:07:00 Utility:  Measure of the satisfaction the consumer derives from consumption of  goods and services. Utility and Consumption An individuals utility depends on everything that individual consumes. Consumption Bundles:  The collection of all the goods and services  consumed by that individual. Utility Function:  Gives the total utility generated by someone’s consumption  bundle. (how Happy they are) Util:  unit of utility Marginal Utility Marginal utility  of a good or service is the change in total utility generated  by consuming one additional unit of that good or service. Marginal utility curve:  Shows how marginal utility depends on the  quantity of a good or service consumed. Downward sloping. Principle of diminishing marginal utility:  Says that each successive  unit of a good or service consumed adds less to total utility than the 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Economics-Chapter-10 - Economics:Chapter10...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online