what is the principle of utility

Q: Explain and differentiate preference and utility.

A: Definitions: Financial specialists utilize the term utility to portray the satisfaction that a buyer…

Q: How is the ordinal utility concept different from the cardinal utility concept

A: The key difference between Cardinal and Ordinal Utility lies within the undeniable fact that…

Q: What are the conditions for utility maximization?

A: Utility refers to the satisfaction that a consumer gets from consumption of a good or service. It…

Q: What are the limitations of the law of Equi- marginal utility

A: According to the given question The law of equi marginal utility states that when the consumer…

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility maximization was first developed by utilitarian philosophers Jeremy Bentham and John Stewart…

Q: what are the exceptions of law of diminising marginal utility ?

A: Marginal utility is the additional satisfaction a consumer gets when consuming additional unit.

Q: How should I spend my money in order to maximize my utility?”

A: Utility refers to the the satisfaction derived by consumption of a good/commodity or a service.

Q: Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table…

A: Utility is maximised at a point where marginal utility per dollar for all the goods are equal.

Q: Who introduced utility

A: Utility is characterised as the whole satisfaction a customer experiences when utilising a good or…

Q: Using the consumer choice theory, explain how an individual decides what combination of different…

A: The consumer choice theory can be understood as a theory that explains the change in consumer…

Q: With the help of a graph, explain how the decrease in the income affect the consumer's choice for…

A: The demand for goods, and services comes from the buyers, or consumers of those goods, and services.…

Q: What is the shape of the marginal utility curve?

A: Marginal utility is the additional utility that an individual derives from the consumption of one…

Q: Explain the three characteristics of utility.

A: The economics as a study is based upon the idea that all the societies in the world tend to face a…

Q: Using a budget line, why does a decrease in the price of a good allow one to potentially consume…

A: A budget line shows various combinations of two goods a consumer can purchase by spending all income…

Q: What is cardinal utility theory?

A: Utility is a term referring to the overall satisfaction obtained from consuming a good or service.

Q: Explain three assumptions about the properties of consumers’ preferences.

A: Consumer preferences are defined as the tastes of people which is measured through utility. Consumer…

Q: How do we measure utility? Explain

A: The utility is the want satisfying power of the commodity. The utility would result in the sense of…

Q: Using examples, does an increase in income affect a consumer’s budget line? Does it impact their…

A: Suppose, X is an individual consuming Grapes and pineapples. X’s income is 150. X gets utility by…

Q: What does the assumption that More Is Better implies about Marginal Utility? Explain?

A: MU(marginal utility) is the change in TU(total utility) when an additional unit of good is consumed.…

Q: Examples of Equity and Inclusiveness in Good Governance.

A: Equity and Inclusiveness in Good Governance. In a good governance , everyone should feel that they…

Q: How do indifference curves represent the consumer's preferences?

A: The indifference curve is a mathematical representation of the combination of all the consumption…

Q: What is the law of diminishing utility? Explain with proper example.

A: The want satisfying power of a commodity is referred to as the utility.

Q: Explain the four kinds of utility.

A: In economics, to represent benefit or worth, the idea of utility is utilized. Its use has grown…

Q: Define Utility in your own words.What does it mean to have diminishing marginal utility?How do you…

A: A person who either orders or use purchased services or goods being for uses including personal,…

Q: Based on the table below, what is the marginal utility from the 2nd unit? UNITS TOTAL UTILITY 1…

A: Marginal utility =change in the total utility from that unit of consumption  Marginal utility from…