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MARGINAL UTILITY: The additional utility, or satisfaction of wants and needs, obtained from the consumption or use of an additional unit of a good. It is specified as the change in total utility divided by the change in quantity. Marginal utility indicates what each additional unit of a good is worth to a consumer.
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Lesson 12: Elasticity and Demand | Unit 4: Determinants
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Page: 20 of 25
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Topic:
Budget Proportion
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- Demand elasticity also depends on how much of their budgets buyers devote to a given good.
- Demand tends to be relatively inelastic for goods the comprise a smaller budget proportion. A smaller budget share reduces the incentive to switch between substitutes.
- Demand tends to be relatively elastic for goods the comprise a larger budget proportion. A larger budget share increases the incentive to switch between substitutes.
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ECONOMIST A person who specializes in economics, especially through the study of economic theories and the accumulated body of economic knowledge. Economists spend their working lives at universities, colleges, government agencies, banks, insurance companies, and multinational corporations. They study economic events, analyze government policies, undertake scientific investigations, and of course pass along economic information to eager students and others seeking enlightenment.
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time strolling through a department store seeking to buy either a wall poster commemorating the 2000 Olympics or a flower arrangement with a lot of roses for your grandmother. Be on the lookout for infected paper cuts.
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This isn't me! What am I?
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The first "Black Friday" on record, a friday marked by a major financial catastrophe, occurred on September 24, 1869 -- A FRIDAY -- when an attempted cornering of the gold market induced a financial crises and economy-wide depression.
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"The past is a foreign country; they do things differently there." -- Leslie Poles Hartley, Writer
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WAPM
Weak Axiom of Profit Maximization
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