A budget line, also known as a budget constraint, shows all possible combinations of two goods that a
Glossary Category: Consumer Theory
diminishing marginal utility
The law of diminishing marginal utility states that as a person consumes more units of a specific product,
marginal utility
Marginal utility is the extra satisfaction or benefit a person receives from consuming one additional unit of a
total utility
Total utility is the overall satisfaction or benefit a person gets from consuming a specific amount of a