UTILITY:
The Satisfaction gained by the consumer through obtaining the goods&services provided
cardinal utility :
1.It can be measured in the terms of numbers such as 1,2,3,.......
2.It can be measured in units called UTILS
3.It is Quantitative in nature.
4.Only one food can be measured at a time.
EX:
Law of Diminishing Marginal Utility
Ordinal Utility:
1.It cannot be measured in the terms of numbers but can be measured in Ranks.
2. It cannot be measured in units.
3.It is Qualitative in nature.
4.Combination of goods can be measured.
EX:
Indifference Analysis
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