Definition

Opportunity Cost:

The cost of good as measured by the alternative uses that are foregone by producing it.

Price elasticity:

The percentage of change in quantity demanded of a good to a one percent of change in its price.

Consumer surplus:

The extra value that individuals receive from consuming a good over the price they pay for it.

Substitution effect:

The part of change in quantity demanded caused by the substitution of one good for another. A movement along an indifference curve.

Income effect:

The part of change in quantity demanded caused by the change in real income. A movement to a new indifference curve.

I guess that's all the definition i need to memorize for my midterm exam later. Hopefully they are ALL i should know.

Jia YOu!! ^^