Shared Flashcard Set

Details

Micro Economics
Midterm
6
Business
Undergraduate 3
11/04/2009

Additional Business Flashcards

 


 

Cards

Term
Consumer Preference Ranking
Definition
Preferences must be
1. Complete AND 2. Transitive
Term
Utility Function
Definition
benefits consumers obtain from consumption of the G/S
Term
MRS
Definition
Marginal rate of substitution

absolute value of the slope of the indifference curve

Diminishes with movement downward along an indifference curve....increasing X and Decreasing Y
Term
Marginal Utility
Definition
MU = deltaU/deltaX
Term
Marginal Rate of Substitution
Definition
MRS= -(deltaY/deltaX)

OR

MUx/MUy
Term
Consumers Budget Line
Definition
M = PxX + PyY
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