Marginal Utility (Grade 11 NSC Matric Economics): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Utility
Utility
Satisfaction or benefit from goods/services
Total utility
Total utility
All satisfaction from consuming a particular amount
Marginal utility
Marginal utility
Additional satisfaction from one more unit consumed
Diminishing marginal utility
Diminishing marginal utility
Less additional satisfaction from each extra unit
Two factors shaping consumer purchases
Two factors shaping consumer purchases
Marginal utility expected & prices
What rational consumers choose
What rational consumers choose
Greatest marginal utility for their money
Consumer goal in spending
Consumer goal in spending
Maximise overall utility
Consumer equilibrium formula
Consumer equilibrium formula
Consumer equilibrium
Consumer equilibrium
Highest total utility achieved from spending
Marginal utility per rand at consumer equilibrium
Marginal utility per rand at consumer equilibrium
Equal across all products purchased