Question

Distinguish between cardinal utility approach and ordinal utility approach to consumer
behavior. How can a consumer attain equilibrium under ordinal utility approach? Explain
with the help of diagram.

Answer 1

MeaningCardinal utility is the utility wherein the satisfaction derived by the consumers from the consumption of good or service can be expressed numerically.Ordinal utility states that the satifaction which a consumer derives from the consumption of good or service cannot be expressed numerical units.ApproachQuantitativeQualitativeRealisticLessMoreMeasurementUtilsRanksAnalysisMarginal Utility AnalysisIndifference Curve AnalysisPromoted byClassical and Neo-classical EconomistsModern Economists