Quiz

•It is the power of capacity of a commodity to satisfy human wants.

•Assumes that we can assign values for utility (derive 100 utils from eating a slice of pizza)

•Additional satisfaction that an individual derives from considering an additional unit of a good on service.

What is the Title of Group 5's report?

It indicates consumer's preference or choice for one commodity over another.

• Utility

• Marginal Utility

• The Ordinal Utility Theory

• Total Utility

•The overall level of satisfied derived from consuming a good or service. It may be defined as the sum of the utility derived from each unit consumed of the commodity.

He satisfies his wants in the order of their utility.

·A rational consumer consumes commodities in the order of their utilities.

• In Case of Two Commodities

• Cardinal Utility Approach

• A Single Commodity Case

• Marginal Utility

MU in terms of money=price of thee commodity

 i.e., MU of a product / MU of a rupee= price of a product.

• Utility Approach

• Cardinal Utility Approach

• In Case of Two Commodities

• A Single Commodity Case

·A consumer attains his equilibrium when he maximizes his TU given his income, consumption expenditure and price of the commodity he consumes.

• In Case of Two Commodities

• Cardinal Utility Approach

• A Single Commodity Case

• Total Utility