Chapter 21

the limit on the consumption bundles that a consumer can afford

a curve that shows consumption bundles that give the consumer the same level of satisfaction

the rate at which a consumer is willing to trade one good for another

two goods with straight-line indifference curves

two goods with right-angle indifference curves

the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution

a good for which an increase in the price raises the quantity demanded