A curve that shows all of the combinations of the goods and/or services
measured on the axes of a graph that can be purchased by an
individual who has a particular income and who faces particular
prices for those goods and/or services.
The maximum possible utility or satisfaction a consumer can achieve,
given that person's income and the prices of the goods and
services that he or she faces.
The theory that the consumer determines the mix of goods and services
that he or she purchases, subject only to income limitations and
the prices that must be paid.
Value received for which the consumer does not have to pay.
An assumption of the theory of utility analysis that over a certain time
period a person's added satisfaction grows less and less as he
or she consumes more and more units of the same good or service.
An assumption of the theory of utility analysis that each additional unit
of a good or service provides the consumer with additional
utility.
A curve that shows all the combinations of goods and/or services measured
on the axes that a particular individual finds will satisfy him
or her equally well.
A theory of consumer behavior that expresses the consumer's tastes in the
form of indifference curves.
A graph displaying some of the infinite number of indifference curves
representing an individual's preferences.
The observation that consumers sometimes pay lower prices for goods and
services that they consider essential than for goods and
services that they consider relatively unimportant.
An assumption that consumers seek to maximize their satisfaction-to get
the most out of their income by selecting the mix of goods and
services that promises to offer the great est amount of personal
satisfaction.
The sum of all the marginal utilities a person gains from successive
units consumed of any good or service over a particular period
of time.
The unit of measure used to gauge a person's anticipated utility or
satisfaction.
A measure or expression of an individual consumer's expected or
anticipated satisfaction.
A theory that attempts to ex plain the underlying forces of consumer
behavior.
The value of a good or serv ice as determined by what people are willing
to pay for the last unit that they buy.
The value of a good or service as determined by the total satisfaction
received from it.
