micro 3 Flashcards
1
Q
Diminishing marginal utility definition?
A
The phenomenon whereby, as the units of any good/service consumed are increased, the marginal utility of each new unit consumed will diminish
2
Q
Demand definition?
A
The quantity of a good/service that consumers are both willing and able to buy at a range of prices over a given period of time
3
Q
shift definition?
A
the movement of the entire demand curve in a diagram
4
Q
Extension/contraction definition?
A
the movement along a demand curve caused by price changes
5
Q
What is a substitute good?
A
goods which perform similar roles such that they can replace one another in use/consumption
6
Q
What is the income effect?
A
where demand changed in reaction to a increase/decrease in income
