Skip to main content
Super TutorResources
Chapter 4 of 19
Chapter Summary

Consumer Behaviour Cardinal And Ordinal Utility Analysis — Chapter Summary

ICSE · Class 12 · Economics

Summary of Consumer Behaviour Cardinal And Ordinal Utility Analysis for ICSE Class 12 Economics. Part of the ICSE Class 12 Economics syllabus.

68 questions40 flashcards6 formulas & key relations5 concepts

Interactive on Super Tutor

Studying Consumer Behaviour Cardinal And Ordinal Utility Analysis? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for chapter summary and more.

Try Super Tutor — Free

Free trial, no card needed.

A graph showing the relationship between total utility (TU) and marginal utility (MU) as consumption of a good increases. TU increases at a diminishing rate, reaches a maximum, and then declines, whil
Super Tutor

One of 10 illustrations for Consumer Behaviour Cardinal And Ordinal Utility Analysis in Super Tutor — alongside flashcards, concept maps and practice questions.

Overview

Consumer behaviour is the process whereby individuals decide what and how much to purchase goods and services for personal consumption. Three approaches are used to study consumer behaviour: Utility Analysis or Cardinal Utility Analysis, Indifference Curve Analysis or Ordinal Utility Approach, and R

Key Concepts

Utility is the measure of intensity

Utility is the measure of intensity of want of a good, meaning the desire to have a commodity. It is subjective, relative, and different from usefulne

Cardinal utility is the utility where

Cardinal utility is the utility where satisfaction derived from consumption of a good can be expressed in numbers. Some economists measure it in imagi

Total utility is the total satisfaction

Total utility is the total satisfaction obtained from consuming a certain number of units of a commodity. It is the sum of marginal utilities from all

Marginal utility is addition made

Marginal utility is addition made to total utility by consuming one more unit of a commodity. It is calculated as MU = ΔTU/ΔQ.

Marginal utility may be positive

Marginal utility may be positive, zero, or negative. Zero marginal utility is the point of satiety, and negative marginal utility is also called disut

Learning Objectives

  • Understand the meaning and characteristics of utility
  • Differentiate between total utility and marginal utility
  • Explain the Law of Diminishing Marginal Utility and its assumptions, causes, limitations, and importance
  • Explain the Law of Equi-marginal Utility and its role in consumer equilibrium
  • Understand consumer’s equilibrium under cardinal utility analysis

Frequently Asked Questions

What are the important topics in Consumer Behaviour Cardinal And Ordinal Utility Analysis for ICSE Class 12 Economics?
Key topics in Consumer Behaviour Cardinal And Ordinal Utility Analysis include Utility and Cardinal Utility Analysis, Types of Utility and Relationship Between MU and TU, Law of Diminishing Marginal Utility, Law of Equi-marginal Utility and Consumer's Equilibrium under Cardinal Utility. Study these first, then practise questions on each for the ICSE Class 12 board exam.
How should I revise Consumer Behaviour Cardinal And Ordinal Utility Analysis for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 68 practice questions on Consumer Behaviour Cardinal And Ordinal Utility Analysis. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Consumer Behaviour Cardinal And Ordinal Utility Analysis

All ICSE Class 12 Economics Chapter Summary

For serious students

Get the full Consumer Behaviour Cardinal And Ordinal Utility Analysis chapter — start free.

Quizzes, flashcards, an AI doubt solver and a study plan for ICSE Class 12 Economics. Free to start, no card needed.

Try Super Tutor Free
Try this chapter free