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Maximizing Utility
Maximizing Utility refers to the economic goal of consumers to gain the highest level of satisfaction from their consumption choices, within their budget constraints.
Salience of Prices
The degree to which the price of a good or service stands out to consumers and influences their purchasing decisions.
Consumer Surplus
The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.
Law of Diminishing Marginal Utility
The principle that as a person consumes more of a product, the satisfaction (utility) gained from consuming each additional unit decreases.
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