Question

Cardinal utility analysis in simple definition

Answer 1

here friend's your answer is as follows:

Cardinal utility analysis is the oldest theory of demand which provides an explanation of consumer's demand for a product and derives the law of demand which establishes an inverse relationship between price and quantity demanded of a product.

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Answer 2

When we consume some commodity , we get satisfaction...For example , suppose you have some icecream and after having you get some satisfaction...Initially , you will more satisfy while having icecream , after having more and more icecream you satisfaction going down...Or you will get lesser and lesser satisfaction after having more and more icecream...

The Word ' Satisfaction ' can be measured in Economics in term of ' Utility '

=> Utility simply a term given to Satisfaction received when certain amount of commodities are consumed...

=> Suppose you have one scoop of icecream...Here you get more satisfaction while having first scoop of icecream...We reperesent this situation in a number..

Suppose i get more satisfaction for the first scoop , so i quote it as 10 satisfactions but remember we do not use satisfaction here...

we have a term for satisfaction which is a uitility
So you say , you get 10 utility after having first scoop of icecream.... ( Note : Unit of utility is utils )...

So for the first scoop we get 10 utils of satisfaction...after having another scoop , we get 8 utils and so on...

Here we represe t the utitly using numbers So such utilities are called Cardinal utility...

So cardinal Utility is refers to the number which represent the satisfaction receive by the cosumer..