Tag Archives | Ordinal Utility Function

In this article we will discuss about the ordinal utility function of the consumer. Consider a simple case where the consumer purchases only two goods, Q1 and Q2. His ordinal utility function is: U = f(q1, q2)                            (6.1) where U is the ordinal utility number, and q1 and q2 are the quantities consumed of the two goods. Assume that U [...]