Pages 1-10 Demonstrate understanding of microeconomics concepts

First section of internal

What is the optimal purchase rule?

Consumers will maximize total utility by allocating their income so that marginal utility per dollar is equal across all goods, purchasing each good up to the point where MU = P.

What is market demand?

The total quantity of a good that all consumers are willing and able to buy at various prices.

What is total utility?

The total satisfaction a consumer gains from consuming all units of a good or service.

What does the law of diminishing marginal utility state?

As more units of a good are consumed, the marginal utility from each additional unit will eventually decrease.

What is a demand schedule?

A table showing the quantity of a good consumers are willing and able to buy at different prices.

What is consumer equilibrium?

The point where a consumer maximizes total utility given their budget constraint.

How is total revenue calculated?

Total revenue = Price × Quantity.

What is utility?

The satisfaction a consumer gained from consuming a good or service.

What is marginal utility?

The additional satisfaction gained from consuming one more unit of a good or service.