Consumer Behavior

a representation of the choices between two goods that consumers make based on their income

the observation that each additional unit of a product consumed will yield progressively smaller increases in utility

sadness or lack of satisfaction that a consumer gets from consuming an item

graphical representation showing the utility consumers get from consuming combinations of two goods; usually graphed as a curve

the incremental utility associated with consuming one additional unit of a good

a situation in which individuals consume in ways to get the best return for consumption

the one point in optimization where the consumer receives the highest utility

a formula to calculate the best consumption possibility

a quantitative measure of happiness or satisfaction used in economic analysis

the process of choosing the combination of goods that provides the highest possible level of happiness

a situation that assumes that consumers spend every last dollar in ways that optimize utility