Name: PowerPoint Presentation
Uploaded: 2021-10-19
Duration: 44 s
Description: TAKE-AWAY. Utility means Want satisfying capacity of a commodity or a service..

TAKE-AWAY. Utility means Want satisfying capacity of a commodity or a service.. 

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Utility means  Want satisfying capacity  of a commodity or a service.

TU refers to the total satisfaction obtained from the consumption of  all possible units  of a particular commodity.

MU refers to the additional utility obtained from the consumption of one more units of the given commodity.

Demand is the desire backed by willingness and ability to pay for a commodity.

TAKE-AWAY. TU= MU(1) + MU(2)+ MU(3)+ ………….+ MU(n). 

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TU= MU(1) + MU(2)+ MU(3)+ ………….+ MU(n)

DEMAND = DESIRE + WILLINGNESS TO BUY + ABILITY TO PAY

MU becomes zero, when TU is at maximum. MU becomes negative, when total utility declines.

Law of Diminishing Marginal Utility: The more we consume something, the less satisfaction we will get from each additional unit of it.

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