Consumer Xhoice

Question 1

How we decide on what products we are going to choose and what we consider every time we shop.

Answer 1

Consumption Choices

Question 2

consumers make the most of their money, and it describes all the products and services that the customer can provide

Answer 2

Budget Constraints

Question 3

To explain consumer behavior, we use utility to measure consumer behavior.

Answer 3

Utility and Budget Constraints

Question 4

an economic term that refers to the complete satisfaction from a good or service consumption.

Answer 4

Utility

Question 5

This measuring utility is the idea that individuals could order or rank the usefulness of various discrete units of economic goods. 1st 2nd 3rd

Answer 5

Ordinal Utility

Question 6

This measuring utility is the quantitative measurement of satisfaction. 1/10

Answer 6

Cardinal Utility

Question 7

A measurement used to assume unit and represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.

Answer 7

Util

Question 8

One of the things that we must compute is the sum of the satisfaction that a person can receive from the consumption.

Answer 8

Total Utility (TU)

Question 9

One of the things that we must compute is the additional utility gained from the consumption of one additional unit of a good or service.

Answer 9

Marginal Utility (MU)

Question 10

How do yo compute the Marginal Utility?

Answer 10

MU= change in Total Utility /divided by/ change in Quantity

Question 11

This law states that as the consumption increases, the marginal utility derived from each additional unit declines, ceteris paribus.

Answer 11

Law of Diminishing Marginal Utility

Question 12

What is the formula in maximizing the utility between two goods?

Answer 12

MUa divided by Pa = MUb divided by Pb

Question 13

This type of Change in Income is when the income or budget constraint increases, the consumption for the goodwill also increases, and vice versa.

Answer 13

Normal good

Question 14

This type of Change in Income is when the income or budget constraint increases, the consumption of the goodwill decreases, and vice versa.

Answer 14

Inferior good

Question 15

This type of Change in Price occurs when price changes and consumers are incentivized to consume less of the good with a relatively higher price and more with a relatively lower price.

Answer 15

Substitution effect

Question 16

This type of Change in Price occurs when the buying power of the income is reduced due to the price increase, thus leading to just buying less of the goods.

Answer 16

Income effect