UTILITY

UTILITY :
It is the want satisfying power of commodity.   
                   (or)
the power of a commodity that satisfy the wants of consumer-want satisfying power.

  ORDINAL UTILITY:
1.Ordinal means- can be compared          with each other - 1, 2,3rd etc
2.ordinal utility analysis--utility can compare but cannot be measure
3. popularized by J.R Hicks & R.G.D Allen
4. used the tool name indifference curve.
Known as indifference curve approach of utility analysis.

Assumption of cardinal utility analysis.
1.Consumer is rational (or) rationality:
-Consumer objective is maximization of utility subject to price & consumption expenditure.
2.Utility is ordinal:
Utility cannot be measured cardinally. it can be expressed ordinally can rank according to the satisfaction or utility of each basket.
3.consistence in choice:
If the consumer prefers combination of A of good to the combination B of goods he then remains consistent in his choice.
  if A>B, then never become B>A.