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the demand changes little, even when the price of the commodity changes. An elastic good experiences arise in demand when the price lowers and a reduction in demand when the price increases.
Utility Theory In
economics, utility is derived from the notion of usefulness. An economic good is beneficial to the degree that it can satisfy a consumer's demand or need.
Ordinal Utility: The ordinal theory of utility proposes that people may arrange or rank the usefulness of distinct discrete units of economic commodities.
Cardinal Utility:Utility is represented as a measurable or cardinal feature of the economic products consumed by a person. Economists use a unit called as a "util" to represent the amount of psychological pleasure generated by a certain item or service fora subset of people in various conditions to aid in this quantitative assessment of satisfaction.
Marginal Utility: The increased utility acquired from consuming one additional unit of an item or service or the additional use that a person has for an additional unit. Eg: First, Apple can give one 5 utils, Second can give 3 utils etc.
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