Term
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Definition
| Product or resource demand whose price elasticity is greater than one. |
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Term
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Definition
| Product or resource demand for which the elasticity coefficient for price is less than 1. |
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Term
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Definition
| Product or resource demand in which quantity demanded can be of any amount at a particular product price. |
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Term
| Perfectly Inelastic Demand |
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Definition
| Product or resource supply in which price can be of any amount at a particular quantity of the product or resource demanded. |
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Term
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Definition
| The difference between the maximum price a consumer is willing to pay for an additional unit of a product and its market price. |
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Term
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Definition
| The difference between the actual price a producer receives and the minimum acceptable price. |
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Term
| Law of Diminishing Marginal Utility |
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Definition
| The principle that as a consumer increase the consumption of a good or service, the marginal utility obtained from each additional unit of the good or service decreases. |
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Term
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Definition
| The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service. |
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Term
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Definition
| The extra utility a consumer obtains from the consumption of 1 additional unit of a good or service. |
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Term
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Definition
| A change in the quantity demanded of a product that results from the change in real income caused by a change in the products price. |
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Term
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Definition
| The effect of a change in the price of a resource on the quantity of the resource employed by a firm, assuming no change in its output. |
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Term
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Definition
| The amount of other products that must be sacrificed to produce a unit of a product. |
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Term
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Definition
| The monetary payment a firm must make to an outsider to obtain a resource. |
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Term
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Definition
| The monetary income a firm sacrifices when it uses a resource it owns rather than supplying the resource in the market. |
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Term
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Definition
| The additional output produced when 1 additional unit of a resource is employed. |
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Term
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Definition
| Any cost that in total does not change when the firm changes its output. |
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Term
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Definition
| A cost that in total increases when the firm increases its output and decreases when the firm reduces its output. |
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Term
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Definition
| The additional cost of producing 1 more unit of output. |
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