Question

distinguish between cardinal utility approach and ordinal utility approach to consumer behavior. how can a consumer attain euilibrium under ordinal utility approach? explain with the help of diagram.

Answer 1

The utility is a psychological phenomenon; that implies the satisfying power of a good or service. It differs from person to person, as it depends on a person’s mental attitude. The measurability of utility is always a matter of contention. The two principal theories for the utility are cardinal utility and ordinal utility. Many traditional economists hold the view that utility is measured quantitatively, like length, height, weight, temperature, etc. This concept is known as cardinal utility concept

On the other hand, ordinal utility concept expresses the utility of a commodity in terms of ‘less than’ or ‘more than’. Take a read of the article to know the important differences between cardinal and ordinal utility.

Answer 2

Answer:

The utility is a psychological phenomenon; that implies the satisfying power of a good or service. It differs from person to person, as it depends on a person’s mental attitude. The measurability of utility is always a matter of contention. The two principal theories for the utility are cardinal utility and ordinal utility. Many traditional economists hold the view that utility is measured quantitatively, like length, height, weight, temperature, etc. This concept is known as cardinal utility concept

On the other hand, ordinal utility concept expresses the utility of a commodity in terms of ‘less than’ or ‘more than’. Take a read of the article to know the important differences between cardinal and ordinal utilit

Explanation: