Utility Definition of Utility :An economic term referring to the total satisfaction received from consuming a good or service It measures the happiness or satisfaction gained consuming commodities (goods and services). 4-8.Marginal utility: The theory of marginal utility was independently developed around 1870 by William Stanley Jevons in England, Carl Menger in Austria and Leon Walras in Switzerland. 4-8.1. Definition of marginal utility: Amount of benefit derived from consuming one additional unit of a product or service. 4-8.2. Total utility & marginal utility table: Qx 1 2 3 4 5 TUx 10 18 24 28 30 MUx 10 8 6 4 2 6 30 0 4-8.3. Total utility & marginal utility curve: TU 30 28 24 18 10 MU 10 8 6 4 2 0 4-8.4. How can we get marginal utility? TU MU= Q Example: From the table below find the marginal utility? Q 1 2 4 6 7 8 Solution TU 30 40 58 70 76 76 MU Questions: 1. Draw the curve of Price effects? 2. Draw the curve of Income effects? 3. Give a definition of Utility? 4. Draw the Total utility & marginal utility curve? 5. From the table below find the marginal utility? Q 1 2 4 6 7 8 TU 100 90 86 70 55 25 MU 6. Translate the following paragraph:Elasticity Ahmed who has super market ask his colleague Mustafa who is studying economics about the relationship between the demand of hair spray and its price, because he note that a slight change in price of hair spray leaded to a sharp change in the quantity demanded of it. Mustafa claim that relation to elasticity, which means good or service is considered to be highly elastic if a slight change in price leads to a sharp change in the quantity demanded or supplied. Usually these kinds of products are readily available in the market and a person may not necessarily need them in his or her daily life.