Basic Microeconomics (lesson 4)

The sense of pleasure, or satisfaction, that comes from consumption.

Preferences for different goods and services-likes and dislikes.

Is the total satisfaction of a person derives from consumption

Is the change in total utility resulting from a one unit change in consumption of a good

The of a good an individual consumes per time period, other thing constant the smaller the increase in total utility from additional consumption

Is the net benefit consumer get from market exchange.

It can be used to measure economic welfare and to compare the effect of such concept as.

Because consumption does not occur instantaneously, time also plays an important role in demand analysis

The cost of consumers has two concepts.

•other things constant, a good or service that provides the same benefit in less time is preferred.

•the premium for time saving goods and services depends on the opportunity cost of person time

•differences in the value of time among help explain differences in the consumption patterns observed in the economy.