Question: Would you expect total utility to rise or fall with additional consumption of a good? Why? Would ...

Under the best option, what is the ratio of the marginal utility to the price of the two items? If this rule does not apply, please explain why the selection can not maximize utility.

Utility refers to the degree of satisfaction that a person obtains from consumer goods or services. Total utility refers to the total satisfaction achieved by consuming the total amount of a given good or service and marginal utility refers to the satisfaction obtained by consuming an additional amount of a particular good or service. Economists may prefer to split utilities into a single unit called utils. However, since utility is subjective, it varies from person to person, and constantly changes according to consumption, we can not actually measure utility. Satisfaction with product or service

Economic analysis of family behavior is based on the assumption that people seek the most efficient use or satisfaction. Individuals are the only judges of their own usefulness. In general, higher commodity consumption leads to higher total utility. However, the additional utility received from each of the larger consumer units tends to decrease as the marginal utility decreases. The utility maximization of consumer budget constraints can be found in various ways. You can add the total utility of each option on the budget line and pick the highest total. You can randomly select the starting points, compare the marginal utility changes that move to neighboring points, and finally find the first alternative. Alternatively, you can compare the marginal utility to the price of the item 1, compare the marginal utility to the price of the item 2, and apply the following rules: In the best choice, the two ratios should be equal.