Changes

1. A consumer's overall satisfaction is expressed in economics as his '''total utility'''.

1. A consumer's overall satisfaction is expressed in economics as his '''total utility'''.

2. If I were to buy the car for $9,000 instead of the $10,000 I was willing to pay for the car...then I would have saved $1,000! The "consumer surplus" concept means that if I am willing to pay up to a certain amount for something and I actually pay less for it, then I have actually saved a few dollars.

2. If I were to buy the car for $9,000 instead of the $10,000 I was willing to pay for the car...then I would have saved $1,000! The "consumer surplus" concept means that if I am willing to pay up to a certain amount for something and I actually pay less for it, then I have actually saved a few dollars.

3. If I were to hike and read for 5 hours, to get the maximum utility out of that time I would have to hike for an hour, then read, hike, read, then hike again. By alternating between the two activities I could maximize my total utility because each time I hike and then read the activity would seem fresh again. So, imagine that I have hiked for an hour and I start to feel tired, so then I get out my book for an hour...feeling refreshed, I hike for another hour, which I believe would still hold the 10 utility points because it is like starting a fresh activity, then if I read again, it also would keep its maximum utility points of 6 because it would be like starting a new activity and would be welcome after the long hour of hiking! So, adding up the utility points for those 5 hours I would get 42 utility points for my total utility. However, just supposing that both the activities WERE to decline in utility for those five hours, I would then have to hike for two hours, then read  for 2, then hike for one more hour. The total utility would then be: 34  

3. If I were to hike and read for 5 hours, to get the maximum utility out of that time I would have to hike for an hour, then read, hike, read, then hike again. By alternating between the two activities I could maximize my total utility because each time I hike and then read the activity would seem fresh again. So, imagine that I have hiked for an hour and I start to feel tired, so then I get out my book for an hour...feeling refreshed, I hike for another hour, which I believe would still hold the 10 utility points because it is like starting a fresh activity, then if I read again, it also would keep its maximum utility points of 6 because it would be like starting a new activity and would be welcome after the long hour of hiking! So, adding up the utility points for those 5 hours I would get 42 utility points for my total utility. However, just supposing that both the activities WERE to decline in utility for those five hours, I would then have to hike for two hours, then read  for 2, then hike for one more hour. The total utility would then be: 34  

4. In order to get the best deal out of the slightly used car, I should ask the dealer to sell it used, not new.

4. In order to get the best deal out of the slightly used car, I should ask the dealer to sell it used, not new.

5. The indifference curves are straight lines because no matter where the person is, on either of the lines, they prefer the good/service just the same as before.

5. The indifference curves are straight lines because no matter where the person is, on either of the lines, they prefer the good/service just the same as before.

6. The income effect is the effect that the price of a good/service has on our income. If the price of something increases, our income will decrease, if the price of the good/service decreases, our income will increase.

6. The income effect is the effect that the price of a good/service has on our income. If the price of something increases, our income will decrease, if the price of the good/service decreases, our income will increase.

7. I think charity relies on the free market because if the free market did not exist, then charity would not exist.

7. I think charity relies on the free market because if the free market did not exist, then charity would not exist.