Utility
Definition of Utility :An economic term referring to the total satisfaction received from consuming a good or service
It measures the happiness or satisfaction gained consuming commodities (goods and services).
4-8.Marginal utility: The theory of marginal utility was independently developed around 1870 by William Stanley Jevons in England, Carl Menger in Austria and Leon Walras in Switzerland.
4-8.1. Definition of marginal utility: Amount of benefit derived from consuming one additional unit of a product or service.
4-8.2. Total utility & marginal utility table:
Qx TUx MUx
1 10 10
2 18 8
3 24 6
4 28 4
5 30 2
6 30 0
4-8.3. Total utility & marginal utility curve:
4-8.4. How can we get marginal utility?
Example:
From the table below find the marginal utility?
Q TU MU
1 30
2 40
4 58
6 70
7 76
8 76
Solution
Questions:
1. Draw the curve of Price effects?
2. Draw the curve of Income effects?
3. Give a definition of Utility?
4. Draw the Total utility & marginal utility curve?
5. From the table below find the marginal utility?
Q TU MU
1 100
2 90
4 86
6 70
7 55
8 25
6. Translate the following paragraph:-
Elasticity
Ahmed who has super market ask his colleague Mustafa who is studying economics about the relationship between the demand of hair spray and its price, because he note that a slight change in price of hair spray leaded to a sharp change in the quantity demanded of it.
Mustafa claim that relation to elasticity, which means good or service is considered to be highly elastic if a slight change in price leads to a sharp change in the quantity demanded or supplied. Usually these kinds of products are readily available in the market and a person may not necessarily need them in his or her daily life.
المادة المعروضة اعلاه هي مدخل الى المحاضرة المرفوعة بواسطة استاذ(ة) المادة . وقد تبدو لك غير متكاملة . حيث يضع استاذ المادة في بعض الاحيان فقط الجزء الاول من المحاضرة من اجل الاطلاع على ما ستقوم بتحميله لاحقا . في نظام التعليم الالكتروني نوفر هذه الخدمة لكي نبقيك على اطلاع حول محتوى الملف الذي ستقوم بتحميله .
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