Consider the following utility function that expresses the preferences of any consumer for good x and good U(x, y) Min {2x,y) Consider that the price of x is S4, the price of y is $2, and the income R is $100. Reply: a) What is the marginal rate of substitution for x? b) What is the marginal rate of substitution for y? c) What is the expression of demand ( demand function) of x? d) What is the demand expression (demand function) for y? e) What is the basket composition that maximizes this consumer's satisfaction given the given restriction? f) What is the utility achieved with this basket?

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Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.