ECON Chapter 4 Notes.txt
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What is demand?
The willingness to buy specific quantities of a good at alternative prices in a given time period.
What is market demand?
The total quantities of a good or service people are willing and able to buy at alternative prices in a given time period: the sum of individual demands.
What is utility?
The pleasure of satisfaction obtained from a good or service.
What is total utility?
The amount of satisfaction obtained from entire consumption of a product.
What is marginal utility?
The satisfaction obtained by consuming one additional unit of a good or service.
The law of diminishing marginal utility is what?
The marginal utility of a good declines as more of it is consumed in a given time period.
What is ceteris paribus?
The assumption of nothing else changing
Define law of demand.
The quantity of a good demanded in a given time period increases as its price falls.
What is the demand curve?
A curve describing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period.
Price elasticity of demand is what?
The percentage change in quantity demanded divided by the percentage change in price.
Define total revenue.
The price of a product multiplied by the quantity sold in a given time period.
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