New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Week 6 Monday and Friday Notes

by: Glenn Andrew

Week 6 Monday and Friday Notes ECON 2005

Glenn Andrew
Virginia Tech
GPA 3.59
View Full Document for 0 Karma

View Full Document

Principles of Economics
Steve Trost

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Get these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Principles of Economics

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Principles of Economics notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

These notes cover most of Chapter 6.
Principles of Economics
Steve Trost
Class Notes
Economics, marginal utility




Popular in Principles of Economics

Popular in Economcs

This 0 page Class Notes was uploaded by Glenn Andrew on Tuesday February 23, 2016. The Class Notes belongs to ECON 2005 at Virginia Polytechnic Institute and State University taught by Steve Trost in Spring 2016. Since its upload, it has received 18 views. For similar materials see Principles of Economics in Economcs at Virginia Polytechnic Institute and State University.

Similar to ECON 2005 at Virginia Tech


Reviews for Week 6 Monday and Friday Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/23/16
Week 6 Monday and Friday Notes Chapter 6 Day 1 amp 2 Marginal Utility we only get a certain amount of enjoymentutility out of one additional item Chapter 6 Consumer Choice and Demand 1 Utility the level of satisfaction or happiness a consumer derives from the consumption of a good or service the basis of choice for economists a Prof No positive connotations a dryness Can be applied to rent mortgage or ice cream food more general of a term b Economists believe goal of consumers is to maximize utilitv c Sometimes quotsatisfactionquot quotpleasurequot or quothappinessquot replaces 39utility39 d Very hard to measure utility if could though would use 39utils39 though it is not possible to compare utility across people ie Cannot deremine who liked a movie better but can determine what each person likes best I liked x movie better 2 Marginal Utility the additional satisgaction gained by the consumption or use of one more unit of something MUATU a A Q b MU slope of total curve 3 Total Utility the total amount of satisfaction obtained from consumption of a good or service a TUZMU b Markets do not maximize total societal utility 4 Law of Diminishing Marginal Utility LDMU The more you consume of a good the less utility you get out of each additional marginal unit consumed 5 Budoet Constraint the limits imposed on household choices by income wealth and product prices aka budget line a 1 good on each axis line from max able to buyconsume for 1 good to max able to consume of the other good b Depicts combinations of the two goods you can afford called quotopportunity or choice setquot c Slope of the line negative of the ratio of the price of two goods price of x axis price of y axis d As prices change the budget line rotates in or out e lncome changes shift line in our out 6 Real Income set of opportunities to purchase real goods and services available to a household as determined by prices and money income a Rises whenever we ccan afford to buy more stuff b EX Gas prices fall frees up more money to buy other stuff gt Real income doubles c Area increases on graph between two goods 7 Utility Maximization a b The utility maximizing combination of goods will always be on the budgetHne Consumers consume in such a fashion as to ensure that the last dollar spent on a good or service yields the same utiity across all goods e Consumer will set the per dollar marginal utility to be the same across all goods and services best bang for their buck Utilitv Maximisng rule marginal utility price


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.