Chapter 6 - Consumer Choice and Demand

final dollar

When the budget is depleted and the ________ spent on each product produces the same marginal utility, consumer equilibrium has been reached.

final dollar

When the budget is depleted and the ________ spent on each product produces the same marginal utility, consumer equilibrium has been reached.

Law of declining marginal value

the smaller the marginal value of each additional unit consumed

Diminishing marginal utility

phenomenon of decreasing marginal utility

Consumer equilibrium

MUp/Pp = MUm/ Pm