AP课程微观经济学名词

　　据60教育集团给大家分享的AP课程微观经济学名词解释，希望对各位有所帮助。

　　Please highlight critical terms;

　　*=not important for exam but you should know

　　Chapter Four consumer choice

　　Total utility-the sum of all the marginal utilities of units already consumed. It is rational for consumer to pursue maximum utility.

　　marginal utility -the benefit (satisfaction) received or anticipated when an additional amount of an activity is undertaken; usually used with marginal opportunity cost. Usually falls as quantity of a particular activity rises, according to the Law of Diminishing Returns.

　　consumer surplus-the total value buyers place on a good over the price they must pay for it; the gains to buyers from trade producer surplus-the payment sellers receive for a good over the cost to them of selling it; the gains from sellers of trade

　　income effect- the effect of budget limitations when price changes; the portion of the change in quantity demanded (when price changes) that is due to buyers being able to afford less or more of a good when the price changes.

　　substitution effect- the tendency to seek substitutes when price changes; the portion of the change in quantity demanded (when price changes) that is due to buyers comparing prices with other goods.