CONSUMER EQUILIBRIUM
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5 Terms
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Marginal Utility per Peso
Additional utility derived from spending the next peso on the good
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Marginal Utility per Peso
additional satisfaction a consumer gets from having one more unit of a good or service
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Equimarginal Condition
consumers will choose a combination of goods to maximize their total utility
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Equimarginal Condition
consider both the marginal utility MU of goods and the price
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If MUxPx > MUyPy. More good X has to be consumed to achieve optimizing condition for maximizing utility
Note 
Flashcards (73)