1. assumptions made about consumers
   1. they act rationally
      1. buy cheaper of two identical goods
   2. limited incomes
      1. can not buy all their wants
   3. aim to get maximum utility from the way they spend
   4. subject to the Law of diminishing Marginal Utility
2. DMU
   1. as a consumer consumes additional units of a good or service, extra satisfaction gained from each aditional unit falls
      1. positive
      2. negitive
   2. assumptions
      1. no significant time gap between consumption of units
      2. does not apply to medicines
      3. quality of sucsessive goods does not change
3. definition
   1. number of units consumers are willing to purchase at any market price at any time
   2. research
      1. demand scheduals
         1. table showing the demand for a good at any time and market price
      2. demand curves
         1. graph showing the demand for a good at any time and market price
4. Equi-marginal utility
   1. def
      1. a utility maximizing consumer will be in equilibrium when his income is spent
      2. so that the ratio of marginal utility (MU) to price (P) is the same for all goods
      3. he consumes