Responsivness of demand Study guides, Class notes & Summaries

Law of diminishing marginal utility correct answers The basic economic principle that as the consumption of a product increases, the marginal utility derived from consuming more of it (per unit of time) will eventually decline marginal utility correct answers the additional utility, or satisfaction, derived from consuming an additional unit of a good marginal benefit correct answers the maximum price a consumer will be willing to pay for an additional unit of a product. It is the dollar va...

summary of "ELASTICITY: RESPONSIVENESS OF DEMAND AND SUPPLY" and brief, clear, and concise explanation of main concepts

UNLIMITED WANTS correct answers The insatiable desire of consumers for goods and services that will give them satisfaction or utility LIMITED MEANS correct answers Things that limit our ability to fulfil our wants and needs; time, skills, and money. OPPORTUNITY COSTS correct answers The loss of potential gain from other alternatives when one alternative is chosen. IMPORTANT DECISION MAKERS IN THE ECONOMY correct answers Households; Firms; Goverments THE PRODUCTION PROBLEM correct ans...