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Utility

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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  1. Utility

  2. Utility Total and marginal utility

  3. 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)

  4. 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)

  5. 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)

  6. 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)

  7. Darren’s utility from consuming crisps (daily) DTU = 2 DQ = 1 MU = DTU / DQ TU Utility (utils) MU Packets of crisps consumed (per day)

  8. 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)

  9. Utility Consumer surplus

  10. Tina’s marginal utility from petrol MU, P (pence per litre) Q (litres per annum)

  11. Tina’s marginal utility from petrol a b Consumer surplus c MU MU, P (pence per litre) Q (litres per annum)

  12. Consumer surplus MU, P P1 MU O Q1 Q

  13. Consumer surplus MU, P P1 Total consumer expenditure MU O Q1 Q

  14. Consumer surplus MU, P Total consumer surplus P1 Total consumer expenditure MU O Q1 Q

  15. Utility Deriving an individual person’s demand curve

  16. Deriving an individual person’s demand curve Consumption at Q1 where P1 = MU a P1 Q1 MU, P MU = D O Q

  17. 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

  18. 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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