Chapter 5 - Demand
0.0(0)
Studied by 2 people
View linked note
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt PlayCard Sorting
1/7
Last updated 3:43 AM on 9/26/22
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
8 Terms
1
New cards
Consumer surplus
________: difference between a buyers reservation price for a product and the price actually paid.
2
New cards
Horizontal addition
________: process of adding individual demand curves to get the market demand curve.
3
New cards
Law of demand
people do less of what they want to do as the cost of doing it rises
4
New cards
Marginal utility
additional utility gained from consuming an additional unit of a good
5
New cards
Law of diminishing marginal utility
tendency for the additional utility gained from consuming an additional unit of a good to diminish as consumption increases beyond some point
6
New cards
Rational spending rule
spending should be allocated across goods so that the marginal utility per dollar is the same for each good
7
New cards
Horizontal addition
process of adding individual demand curves to get the market demand curve
8
New cards
Consumer surplus
difference between a buyers reservation price for a product and the price actually paid