Define the following terms. Give a complete and precise definition in one sentence
a. total utility
b. marginal utility
c. consumer's surplus
d. "law" of demand
a. Total utility of a good is the satisfaction the consumer receives from consuming a given quantity of the commodity. Measured in money terms, it is the maximum amount a consumer is willing to give in exchange for the good.
b. Marginal utility of a good is the satisfaction the consumer receives from the marginal unit consumed. Measured in money terms, it is the maximum amount of money the consumer is willing to pay for one more unit of the commodity.
c. Consumer's surplus is the difference between the amount that the quantity of commodity X purchased is worth to the consumer and the amount that the market requires the consumer to pay for that quantity of X.
d. The "law" of demand is the principle that a lower price generally is associated with an increased quantity demanded of a commodity.
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