微观经济学复习（Microeconomics review）.docVIP

微观经济学复习（Microeconomics review） Microeconomics Price elasticity of demand: the percentage change in quantity demanded by a change of 1% of a commoditys price. Income elasticity of demand: a percentage of the change in the demand for a product resulting from a change of 1% in revenue Cross elasticity of demand: when the price of another commodity varies by 1%, the demand for a commodity varies by a few percent. He reflects the extent to which the demand for a commodity is influenced by the change in the price of another commodity Demand: the quantity of goods a consumer is willing and able to purchase at a given period of time at an established price level. Demand function: the relationship between the quantity demanded of a commodity and the factors that influence the quantity of the demand. Law of demand: demand and demand prices are inversely related. Changes in demand: changes in the quantity demanded by the product itself as a result of changes in the demand for other factors. Supply price elasticity: the price elasticity of supply, the market value of a commodity, the change in the price of 1% per cent of the amount of change caused by the amount of supply. It reflects the extent to which supply is responsive to price changes. Utility: the degree to which a consumer obtains satisfaction when buying, owning, or consuming something or service. Total utility: the total satisfaction of a consumer from a certain amount of goods or services Marginal cost: the amount of total cost that a manufacturer brings in each unit of production in the short run Marginal utility: the degree to which consumers increase their consumption per unit, article, or service. The law of diminishing marginal returns: refers to the production process, constant set production technology, and the amount of other factors unchanged, increase brought by the continuous increase of some elements of a unit of production will decline sooner or later The marginal rate of technical substitution: element