Utility
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Utility. Utility. Total and marginal utility. Darren’s utility from consuming crisps (daily). Packets of crisps. TU in utils. 0 1 2 3 4 5 6. 0 7 11 13 14 14 13. Utility (utils). Packets of crisps consumed (per day). Darren’s utility from consuming crisps (daily). TU.

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Utility

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Utility

Utility


Utility

Utility

Total and marginal utility


Darren s utility from consuming crisps daily

Darren’s utility from consuming crisps (daily)

Packets

of crisps

TU

in utils

0

1

2

3

4

5

6

0

7

11

13

14

14

13

Utility (utils)

Packets of crisps consumed (per day)


Darren s utility from consuming crisps daily1

Darren’s utility from consuming crisps (daily)

TU

Packets

of crisps

TU

in utils

0

1

2

3

4

5

6

0

7

11

13

14

14

13

Utility (utils)

Packets of crisps consumed (per day)


Darren s utility from consuming crisps daily2

Darren’s utility from consuming crisps (daily)

TU

MU

in utils

Packets

of crisps

TU

in utils

-

7

4

2

1

0

-1

0

1

2

3

4

5

6

0

7

11

13

14

14

13

Utility (utils)

Packets of crisps consumed (per day)


Darren s utility from consuming crisps daily3

Darren’s utility from consuming crisps (daily)

TU

MU

in utils

Packets

of crisps

TU

in utils

-

7

4

2

1

0

-1

0

1

2

3

4

5

6

0

7

11

13

14

14

13

Utility (utils)

MU

Packets of crisps consumed (per day)


Darren s utility from consuming crisps daily4

Darren’s utility from consuming crisps (daily)

DTU = 2

DQ = 1

MU = DTU / DQ

TU

Utility (utils)

MU

Packets of crisps consumed (per day)


Darren s utility from consuming crisps daily5

Darren’s utility from consuming crisps (daily)

TU

DTU = 2

DQ = 1

Utility (utils)

MU = DTU / DQ = 2/1 = 2

MU

Packets of crisps consumed (per day)


Utility1

Utility

Consumer surplus


Tina s marginal utility from petrol

Tina’s marginal utility from petrol

MU, P (pence per litre)

Q (litres per annum)


Tina s marginal utility from petrol1

Tina’s marginal utility from petrol

a

b

Consumer

surplus

c

MU

MU, P (pence per litre)

Q (litres per annum)


Consumer surplus

Consumer surplus

MU, P

P1

MU

O

Q1

Q


Consumer surplus1

Consumer surplus

MU, P

P1

Total

consumer

expenditure

MU

O

Q1

Q


Consumer surplus2

Consumer surplus

MU, P

Total

consumer

surplus

P1

Total

consumer

expenditure

MU

O

Q1

Q


Utility2

Utility

Deriving an individual

person’s demand curve


Deriving an individual person s demand curve

Deriving an individual person’s demand curve

Consumption at Q1

where P1 = MU

a

P1

Q1

MU, P

MU = D

O

Q


Deriving an individual person s demand curve1

Deriving an individual person’s demand curve

Consumption at Q2

where P2 = MU

b

P2

Q2

MU, P

a

P1

MU = D

O

Q1

Q


Deriving an individual person s demand curve2

Deriving an individual person’s demand curve

Consumption at Q3

where P3 = MU

c

P3

Q3

MU, P

a

P1

b

P2

MU = D

O

Q1

Q2

Q


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