Tag Archives | Utility

The Hicksian Demand Function: With Diagram | Utility | Microeconomics

The Hicksian welfare measures can be used for the evaluation of any change of state as long as the agent's indirect utility for income is well defined before and after the change. The set of optimal commodity vectors in the EMP is denoted as h(p,u) ⊂ RL+. It is known as the Hicksian or compensated demand corresponding or function if [...]

By |2017-06-08T11:57:24+05:30June 8, 2017|Utility|Comments Off on The Hicksian Demand Function: With Diagram | Utility | Microeconomics

Law of Diminishing Marginal Utility | Consumption

In this article we will discuss about the law of diminishing marginal utility. Also learn about whether Marginal Utility (MU) diminishes with an increase in the stock of a commodity or not.   Utility simply means the capacity of a commodity to satisfy a given desire. When we say that a commodity has high utility, all that we mean is that [...]

By |2017-01-13T05:58:26+05:30January 13, 2017|Diminishing Marginal Utility|Comments Off on Law of Diminishing Marginal Utility | Consumption

Total Utility and Marginal Utility | Commodity

The upcoming discussion will update you about the difference between total utility and marginal utility. Utility, in ordinary sense, means usefulness. But, in economics, it means want-satisfying power of a commodity or service — the power to satisfy a human want. Thus, a pen has utility to a teacher but not to an illiterate farmer. As Joan Robinson comment: "Utility [...]

By |2017-01-13T05:58:26+05:30January 13, 2017|Difference between|Comments Off on Total Utility and Marginal Utility | Commodity
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