A consumer has the utility function and an income of $200. Initially, the price of good 1 is $6 and the price of good 2 is $2. a) Find consumer's demand function for good b) Then, price of good 1 decreases o to $ 4 and price of good 2 stays at $2. What is the total change in demand for good 1? Show the income and substitution effects of this price change both graphically and algebraically.

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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.