One of the questions that economists are interested in is how people decide to spend … See more

If we look more closely at Axel's total utility we can observe how it changes as he consumes more ice cream. The change in a consumer's total utility when he consumes … See more

A good first step in determining how a consumer will decide to allocate their income is knowing the satisfaction they get from a good. But before the optimal amount to buy of an… See more

The law of diminishing marginal utility helps us understand the law of demand. Because consumers will derive less happiness or benefit from additional units of a good, they will only be … See more

A consumer's or society's utility schedule can be graphed using total and marginal utility functions.
Notice that at a quantity of 4‍ , total utility is maximized … See more