Marginal utility is the additional satisfaction from one more unit; total utility is the overall satisfaction from all units consumed.

MU is the added satisfaction; MU/P considers the price paid for that satisfaction.

A normal good's consumption increases with income, while an inferior good's consumption decreases.

A substitute good can be used in place of another, while a complement good is consumed together with another.

Cardinal utility assigns a numerical value to satisfaction, while ordinal utility ranks preferences without assigning specific values.

Revealed preference infers consumer preferences from their actual choices, while stated preference asks consumers to express their preferences directly.

Risk aversion prefers a certain outcome over a gamble with the same expected value, while risk-seeking behavior prefers the gamble.

A budget line shows the possible combinations of goods a consumer can afford, while an indifference curve shows combinations that give the consumer the same level of satisfaction.

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay, while producer surplus is the difference between what a producer receives and their cost of production.

Economic profit includes both explicit and implicit costs, while accounting profit only includes explicit costs.

It reduces the MU/P of sugary drinks, potentially leading to decreased consumption and a shift to substitutes.

Subsidies increase the MU/P of healthy foods, encouraging consumers to buy more of them.

Rent control can lead to shortages and reduced availability of housing, potentially decreasing utility for those unable to find affordable housing.

Free public education increases access to education, potentially increasing lifetime utility for individuals by improving their future earning potential and overall well-being.

Universal healthcare ensures access to medical services, potentially increasing utility by reducing financial burdens and improving health outcomes.

Minimum wage can increase the income of low-wage workers, potentially increasing their utility by improving their ability to afford essential goods and services, but it may also lead to job losses for some.

Carbon tax increases the cost of goods and services that produce carbon emissions, potentially decreasing utility for consumers who rely on these goods, but it may also lead to increased utility in the long run by reducing the negative impacts of climate change.

Free trade increases the availability of goods and services at lower prices, potentially increasing utility for consumers by expanding their choices and reducing their costs.

Unemployment benefits provide income support to individuals who have lost their jobs, potentially increasing their utility by helping them maintain their standard of living while they search for new employment.

Progressive taxation redistributes income from higher-income earners to lower-income earners, potentially increasing overall utility by reducing income inequality and improving the well-being of the less affluent.

Satisfaction a consumer gets from consuming a good or service.

The additional satisfaction from consuming one more unit of a good or service.

The additional satisfaction from spending one dollar on a good or service; MU/Price.

As you consume more of a good, the additional satisfaction (MU) from each additional unit decreases.

The total satisfaction a consumer gets from consuming a certain quantity of goods or services.

The process of obtaining the greatest level of overall satisfaction or happiness from consuming goods and services, subject to budget constraints.

The limit on the consumption bundles that a consumer can afford.

The condition where a consumer allocates their limited income in a way that maximizes their utility, given the prices of goods and services.

A curve that shows consumption bundles that give the consumer the same level of satisfaction.

The rate at which a consumer is willing to trade one good for another while maintaining the same level of utility.