When MU decreases but remains positive, TU increases at a diminishing rate.

(marginal rate of substitution), which means as a consumer has more of good , they are willing to give up less and less of good to get an additional unit of

Assumes utility can be measured in numbers (Utils). This approach was championed by Alfred Marshall.

Try 4 units of X: MU(_x)/P(_x) = 7. Spend = 4×2 = ₹8.

. In Class 11 Microeconomics, this is typically analyzed through two main approaches: Cardinal Utility (Marshallian) and Ordinal Utility (Indifference Curve). 1. Cardinal Utility Approach (Marshallian Analysis)

: The consumer gets more utility per rupee from Good X. They will buy more X and less Y. This causes MUxcap M cap U sub x to fall and MUycap M cap U sub y to rise until they become equal. If

: The want-satisfying power of a commodity. It varies from person to person.

When a consumer spends income on two goods (say X and Y), equilibrium is reached when the ratio of marginal utility to price is the same for both goods. MUmcap M cap U sub m is the marginal utility of money).

Consumer equilibrium refers to a situation where a consumer buys a combination of goods that maximizes their satisfaction, given their income and market prices. They have no intention to change this position. Cardinal Utility Approach

Two different curves cannot represent the same level of satisfaction. Budget Line

Strengths (actionable)