Term
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Definition
| The abstract measurement of the satisfaction or happiness that a consumer receives from a bundle of goods. |
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Term
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Definition
Changes in utility if a person adds one more of something.
Each additional unit of a good leaves a smaller one. |
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Term
| People aren't always rational because... |
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Definition
| People are often over-confident; people give too much weight to a small umber of vivid observations; people are reluctant to change their minds |
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Term
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Definition
| The limit on the consumption bundles that a consumer can afford |
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