chapter 5 Flashcards
psychology reason to consumer behavior?
why we want, what we do
what does utility refer to?
level of satisfaction of a good/service
what is marginal utility?
the last or additional satisfaction from a good or service
what is law of diminishing marginal utility?
good margin declines after period of time
consumer satisfaction with good demanding marginal utility?
satisfaction we have with one unit that decreases
what is law of demand?
the lower a price is the lower of quantities being made
what is market demand?
total quantity cosumers are willing and able to buy
what does consumer surplus measure?
price vs price paid by consumer
what is price discrimination?
increased prices on units towards a specific consumer good/services
what is an example of price discrimination?
buying a car where dealerships want you to pay more then you need to
when does consumer max total utility?
goods or services best price, buying more and paying less
what is the consumer choice theory?
satisfaction will never be 100% based on wants, needs, and budget
what is total utility?
amount of satisfaction from an entire consumption of a product
