Marginal Analysis and Consumer Choice
Rachel Carter
9 min read
Study Guide Overview
This study guide covers utility maximization in AP Microeconomics, focusing on consumer choice given a limited budget. It explains key terms like utility, marginal utility (MU), and marginal utility per dollar (MU/P). The guide outlines the rules and steps for solving utility maximization problems, including the principle of MU1/P1 = MU2/P2. It also provides sample questions, practice problems, and emphasizes the law of diminishing marginal utility.
How are we doing?
Give us your feedback and let us know how we can improve
Question 1 of 11
What does 'utility' refer to in the context of consumer choice? 🤔
The price of a good or service
The total amount of goods consumed
The satisfaction a consumer gets from consuming a good or service
The cost of producing a good