consumers equilibrium and demand,total utility,marginal utility with diagram

Consumer Equilibrium And Demand-Utility,Total utility,Marginal utility

Utility:   In economics the term utility refers to that quantity of a commodity by virtue of which our wants are satisfied. In other words want satisfying power of a good is called utility.

Total utility: Total  utility is the sum total of utility derived from the consumption of all units of a commodity.

Marginal utilty: marginal utility refers to additional utility on account of the consumption of an additional unit of a commodity. Marginal utility at nth stage is measured as difference of total utility at nth stage and total utility at n-1th stage  that is, MUn=TUn-TUn-1.

it should be noted that Total utility is maximum when marginal utility is Zero. And total utility starts declining when Mariginal utility is negative.

(blog 6)