Econ 101 Demand Notes: MV, TV, TE, CS, Demand Curve, Market Demand, and Shifts

0.0(0)
studied byStudied by 0 people
0.0(0)
linked notesView linked note
full-widthCall with Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/11

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No study sessions yet.

12 Terms

1
New cards

Value (willingness to pay)

What a person gives up for a good; can vary per unit.

2
New cards

Total Value (TV)

Sum of marginal values for all units consumed.

3
New cards

Marginal Value (MV)

Benefit from the next unit; tends to diminish with increased consumption.

4
New cards

Total Expenditure (TE)

Actual money spent; calculated as TE = P * Q.

5
New cards

Consumer Surplus (CS)

Net benefit; calculated as CS = TV - TE.

6
New cards

Demand Schedule

Table showing quantity an individual buys at various prices.

7
New cards

Demand Curve

Graphical representation of the demand schedule; typically downward-sloping.

8
New cards

Market Demand

Horizontal sum of individual demand curves.

9
New cards

Change in Quantity Demanded

Movement along the demand curve due to price change.

10
New cards

Change in Demand

Shift of the entire demand curve due to non-price factors.

11
New cards

Law of Demand

Price and quantity demanded are inversely related; due to diminishing marginal value.

12
New cards

Consumer Surplus Formula

CS(Q) = TV(Q) - TE(Q)