Utility-Numerical score representing the satisfaction that a consumer gets from a given market basket. Utility function-Formula that assigns (a level of utility to individual market baskets
➢ Utility-Numerical score representing the satisfaction that a consumer gets from a given market basket. ➢ Utility function-Formula that assigns (赋值) a level of utility to individual market baskets
Clothing (units per week) 15 10 5 U3=100 : U,=50 U1=25 Food 5 10 15 (units per week) Utility Functions and Indifference Curves A Utility function can be represented by a set of indifference curves,each with a numerical indicator.This figure shows three indifference curves,with utility levels of 25,50,and 100,respectively
U1=25 U2=50 U3=100 5 10 15 15 10 5 Clothing (units per week) Food (units per week) Utility Functions and Indifference Curves A Utility function can be represented by a set of indifference curves, each with a numerical indicator.This figure shows three indifference curves, with utility levels of 25, 50, and 100, respectively