The limit to a consumer’s

consumption choices if the entire income is spent. It marks the boundary

between those combinations of goods and services that a consumer can afford to

buy and those that it cannot.

The change in total utility

resulting from a one-unit increase in the quantity of a good consumed.

The benefit or satisfaction

that a person gets from the consumption of goods and services.

The effect of a change in

price of a good or service on the quantity bought when the consumer

(hypothetically) remains indifferent between the original and the new

consumption situations—that is, the consumer remains on the same indifference

curve.