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What is consumer equilibrium under cardinal approach?
illustrate and explain e the consumer equilibrium ender cardinalist and ordinalist?
The cardinalist and ordinalist approach to consumer behaviour discuss?
Consumer Behavior from a Cardinalist and Ordinalist Approach Utility means satisfaction which consumers derive from commodities and services by purchasing different units of money.From Wikipedia, the free encyclopedia "Ineconomics, utility is a measure of satisfaction;it refers to the total satisfaction received by a consumer from consuming a good or service. "Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behavior in terms of attempts to increase one's utility. Utility is often affected by consumption of various goods and services, possession of wealth and spending of leisure time. According to Utilitarian's, such as Jeremy Bentham (1748- 1832) and John Stuart Mill (1806-1873), theory "Society should aim to maximize the total utility of individuals, aiming for "the greatest happiness for the greatest number of people". Another theory forwarded by John Rawls (1921-2002) would have society maximize the utility of those with the lowest utility, raising them up to create a more equitable distribution across society. Utility is usually applied by economists in such constructs as the indifference curve, which plot the combination of commodities that an individual or a society would accept to maintain at given level of satisfaction. Individual utility and social utility can be construed as the value of a utility function and a social welfare function respectively. When coupled with production or commodity constraints, under some assumptions, these functions can be used to analyze Pareto efficiency, such as illustrated by Edgeworth boxes in contract curves. Such efficiency is a central concept in welfare economics.In finance, utility is applied to generate an individual's price for an asset called the indifference price. Utility functions are also related to risk measures, with the most common example being the entropic risk measure.
Behaviour of a consumer if the prices of a commodity change holding his money income constant under the ordinalist approach?
This is a controversial question, but here is my best answer: B=ΔC*S, where S is the stimulus or ordinal utility shift. (e.g. John Doe pays for 5 apples and sells 5 oranges over the course of a day, where apples and oranges are the same price yielding an overall stimulus rate equaling 20 utils. If consuming/selling an apple yields 2 utils, and consuming/selling an orange yields 1 util; selling an apple yields 3 utils, selling an orange yields 2 utils, then B=|0-(2+2+2+2+2)-(1+1+1+1+1)|*20 utils^2/day=100 utils^2/day. Calculating utils by calculating the dominant strategy is a task that economists today labor over. Some say it is possible, while others doubt it. Survey data, ranking choices by their social value, appears to be the best method at present for assessing which product/action people favor/choose.
What is consumer equilibrium under cardinal approach?
illustrate and explain e the consumer equilibrium ender cardinalist and ordinalist?
Assumptions for ordinalist in consumer behavior?
Ordinalist assumptions in consumer behavior include that individuals can rank their preferences for goods and services in terms of satisfaction, that they make rational decisions based on these preferences, and that their utility can be compared and measured through ordinal rankings rather than exact numerical values. This theory focuses on the relative order of preferences rather than the absolute magnitude of utility.
Behavior of a consumer if the prices of a commodity change holding his money income constant under the ordinalist approach?
Depend on the change; higher prices or lower ones.
What is difference between ordinal approach and cardinal approach?
In consumer behavior, the satisfaction that consumers get by consuming commodities is utility. A cardinalist thinks that utility can be measured, quantified, and expressed in quantitative terms. An ordinalist thinks that you cannot measure utility in quantitative terms.
The cardinalist and ordinalist approach to consumer behaviour discuss?
Consumer Behavior from a Cardinalist and Ordinalist Approach Utility means satisfaction which consumers derive from commodities and services by purchasing different units of money.From Wikipedia, the free encyclopedia "Ineconomics, utility is a measure of satisfaction;it refers to the total satisfaction received by a consumer from consuming a good or service. "Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behavior in terms of attempts to increase one's utility. Utility is often affected by consumption of various goods and services, possession of wealth and spending of leisure time. According to Utilitarian's, such as Jeremy Bentham (1748- 1832) and John Stuart Mill (1806-1873), theory "Society should aim to maximize the total utility of individuals, aiming for "the greatest happiness for the greatest number of people". Another theory forwarded by John Rawls (1921-2002) would have society maximize the utility of those with the lowest utility, raising them up to create a more equitable distribution across society. Utility is usually applied by economists in such constructs as the indifference curve, which plot the combination of commodities that an individual or a society would accept to maintain at given level of satisfaction. Individual utility and social utility can be construed as the value of a utility function and a social welfare function respectively. When coupled with production or commodity constraints, under some assumptions, these functions can be used to analyze Pareto efficiency, such as illustrated by Edgeworth boxes in contract curves. Such efficiency is a central concept in welfare economics.In finance, utility is applied to generate an individual's price for an asset called the indifference price. Utility functions are also related to risk measures, with the most common example being the entropic risk measure.
Behaviour of a consumer if the prices of a commodity change holding his money income constant under the ordinalist approach?
This is a controversial question, but here is my best answer: B=ΔC*S, where S is the stimulus or ordinal utility shift. (e.g. John Doe pays for 5 apples and sells 5 oranges over the course of a day, where apples and oranges are the same price yielding an overall stimulus rate equaling 20 utils. If consuming/selling an apple yields 2 utils, and consuming/selling an orange yields 1 util; selling an apple yields 3 utils, selling an orange yields 2 utils, then B=|0-(2+2+2+2+2)-(1+1+1+1+1)|*20 utils^2/day=100 utils^2/day. Calculating utils by calculating the dominant strategy is a task that economists today labor over. Some say it is possible, while others doubt it. Survey data, ranking choices by their social value, appears to be the best method at present for assessing which product/action people favor/choose.
