Chapter 4 Flashcards
the value that is directly related to the benefits their owners receive through their use
value in use
what a particular good is worth in exchange for some other good. Also called trading value
value in exchange
as ones supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease
diminishing marginal utility
the amount of satisfaction that results from a one-unit increase of a product, tends to become smaller with each additional unit
marginal utility
the total amount of satisfaction that one received from all added together
total utility
a list of numbers that compares price with quantity demanded
demand schedule
a graphic representation of the amount of goods purchased at different prices
demand curve
attitudes toward a good vary constantly as people’s preferences change or as they gain more information
taste and preferences
a good whose demand is directly related to consumers incomes, such as airline tickets and new cars
normal good
demand for these items as consumers; income rise, and vice versa
inferior goods
demand for a product is often influenced by consumers’ expectations of what will happen in the future
consumer expectations
the result in any of the above five factors
change in demand
represented at a specific point along a demand curve influenced by price.
change in quantity demanded
two concepts that govern production
laws of supply and demand
Income effect says when a price of good _____ consumers tend to buy ____ of that good
falls, more
