Marginal utility and consumer surplus Marginal utility and

Marginal utility and consumer surplus

Marginal utility and consumer surplus Total and marginal utility

Darren’s utility from consuming crisps (daily) Utility (utils) TU Packets of crisps TU in utils 0 1 2 3 4 5 6 0 7 11 13 14 14 13 Packets of crisps consumed (per day)

Darren’s utility from consuming crisps (daily) TU Utility (utils) MU Packets TU of crisps in utils 0 1 2 3 4 5 6 0 7 11 13 14 14 13 Packets of crisps consumed (per day) 7 4 2 1 0 -1

Darren’s utility from consuming crisps (daily) TU Utility (utils) MU Packets TU of crisps in utils 0 1 2 3 4 5 6 0 7 11 13 14 14 13 7 4 2 1 0 -1 MU Packets of crisps consumed (per day)

Darren’s utility from consuming crisps (daily) TU Utility (utils) DTU = 2 DQ = 1 MU = DTU / DQ = 2/1 = 2 MU Packets of crisps consumed (per day)

Marginal utility and consumer surplus Consumer surplus

Tina’s marginal utility from petrol MU, P (pence per litre) a b c Q (litres per annum) MU

Tina’s marginal utility from petrol MU, P (pence per litre) a Consumer surplus b c Q (litres per annum) MU

Consumer surplus MU, P P 1 MU O Q 1 Q

Consumer surplus MU, P P 1 Total consumer expenditure O MU Q 1 Q

Consumer surplus MU, P P 1 Total consumer surplus Total consumer expenditure O MU Q 1 Q