Overview
Marginal utility and budgeting are crucial concepts in economics that help individuals make informed decisions about their consumption and spending. Marginal utility refers to the additional satisfaction gained from consuming one more unit of a good, while budgeting involves planning how to allocate...
Key Terms
Example: Eating a slice of pizza provides utility because it satisfies hunger.
Example: The satisfaction from eating one more slice of pizza.
Example: A monthly budget helps track spending and savings.
Example: If you have $50, your budget constraint limits your spending to that amount.
Example: Choosing between buying a new phone or saving for a vacation.
Example: Allocating spending to items that provide the most satisfaction.
Related Topics
Key Concepts
Marginal UtilityBudget ConstraintsConsumer ChoiceUtility Maximization