F inal Review
M a rginal U tility (148): T he additional utili ty, or satisfaction, derived from consuming an
additional unit of good.
Consumer choice (148-150): A consumer will purchase until the marginal
benefit equals the price (MB = P). The shape and
M idterm Review:
Scarcity (5): T he fundamental concept of economics that indicate that there is less of a
good freely available from nature that people would like. (Examples: apples and cars.
Seawater is N OT scarce)
Choice and (5-6, 87): The act of sele
When the price of a good is legally set below the equilibrium level, a shortage often results. This shortage:
is a temporary
b. is the result of a shift in demand.
c. is the result of a shift in supply.
d. occurs because the price ceiling prevents the